Grant County Kentucky by ogr17517

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A SocioEconomic Profile
  Grant County, Kentucky




            Produced by the
    Economic Profile System (EPS)
            February 8, 2009
Grant County, Kentucky                                                                                                About EPS
About The Economic Profile System (EPS)
This profile was produced using the 2008 version of the Economic Profile System (EPS), last updated in February 2009. EPS is designed
to allow users to produce detailed socioeconomic profiles automatically and efficiently at a variety of geographic scales using the
spreadsheet program Microsoft Excel.
Profiles contain tables and figures that illustrate long-term trends in population; employment and personal income by industry; average
earnings; business development; retirement and other non-labor income; commuting patterns; agriculture; and earnings by industry.
Databases used for EPS profiles are from: Bureau of the Census including County Business Patterns; Bureau of Labor Statistics; and the
Regional Economic Information System (REIS) of the Bureau of Economic Analysis, U.S. Department of Commerce.
EPS was developed in partnership with the Bureau of Land Management by Ray Rasker, Jeff van den Noort, Ben Alexander and Patty
Gude.


EPS and Acrobat files (.pdf) of completed profiles for the West are available for free download at www.headwaterseconomics.org.


For technical questions about EPS, contact Jeff van den Noort at jeff@headwaterseconomics.org.




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Grant County, Kentucky                                      Table of Contents

          About the Economic Profile System
          Table of Contents
          Read This First
          Demographics, Employment and Income
                      Demographics, Employment and Income             1
                      Population Trends                               2
                      Population                                      3
                      Age and Gender                                  4
                      Income Distribution & Housing                   5
                      Employment                                      6
                      Employment                                      7
                      Personal Income                                 8
                      Proprietors                                     9
                      Non-labor Income                               10
                      Transfer Payments                              11
                      Personal Income                                12
                      Government Employment                          13
                      Earnings Per Job                               14
                      Per Capita Income                              15
                      Firms by Industry                              16
                      Firms by Industry in 2001 (NAICS)              17
                      Firms by Size                                  18
                      Unemployment Trends                            19
                      Commuting                                      20
                      Agriculture (Business Income)                  21
          Relative Performance Comparisons
                      Relative Performance Comparisons               22
                      Specialization                                 23
                      Stability                                      24
                      Performance Comparisons                        25
          Employment and Personal Income by Industry
                      Employment and Income by Industry               26
                      Read This First                                 27
                      Employment (SIC)                                28
                      Employment (NAICS)                              29
                      Personal Income (SIC)                           30
                      Personal Income (NAICS)                         31
                      Wages and Employment                            32
                      Data Sources                               Data Sources
                      Methods                                      Methods
                      Glossary                                     Glossary




                                      Table of Contents
Grant County, Kentucky                                                                                    Read This First
There are two related systems for producing socioeconomic profiles: this one, the Economic Profile System (EPS) and the Economic
Profile System Community (EPSC). For best results, use both profile systems. Below is a table highlighting how the two systems
complement each other.

                                                           EPS                                                 EPSC
     Geographic level of detail     Nation                                               Nation, Region, Division, States, Counties,
                                    Region (metro, non-metro, total)                     County Subdivisions, Places (Towns), Indian
                                                                                         Reservations, Congressional Districts
                                    State (metro, non-metro, total)
                                    County
     Databases used                 Bureau of the Census (Census)                        Bureau of the Census, Decennial Census of
                                    County Business Patterns (CBP)                       Population and Housing, 1990, 2000. (1990 to
                                                                                         2000 comparisons at the county level only)
                                    Bureau of Labor Statistics (BLS)
                                    Bureau of Economic Analysis (BEA), Regional
                                    Economic Information System (REIS)
     Time series used               Continuous data from 1970 to the most recent         2000. At the county level only 1990 to 2000
                                    data available.                                      comparisons can be made to show changes in
                                                                                         age and household income distribution.

     Advantages                     Long-term trend analysis including trends in   Age distribution, race, housing costs, housing
                                    employment and personal income by sector, the affordability, education rates, poverty.
                                    number of businesses establishments by type
                                    and size, and non-labor sources of income such
                                    as retirement and age-related income.
                                    Wages by Industry.                                   Finer geographic detail.
                                    Counties are compared to states and nation. Key
                                    indicators of performance are benchmarked
                                    against the US medians.
     Disadvantages                  For some counties employment and personal            Census data is never suppressed, but it is less
                                    income data may be suppressed for some               useful than REIS data used in EPS to see long-
                                    industries and for some years. EPS includes a        term trends by industry; it is only available only
                                    system for estimating these data gaps.               for 2000 with limited comparisons to 1990.


Important notes:
1)   Total employment figures from the Regional Economic Information System (used in most of EPS) and the other sources can
     differ for the following reasons:
     - Census employment figures are reported by place of residence, while BEA REIS and the other sources are by place of work.
      - BEA REIS counts all jobs, regardless of whether part-time or whether a person has several jobs. For example, if a person has
     three part-time jobs, they count it as three jobs.
     - In some areas seasonality may play a role: the census is taken in the spring, a shoulder season for many “resort” areas, while
     BEA REIS data is an annual average.
     - BEA REIS includes sole proprietors and government employment while County Business Patterns and BLS Wages do not.

     - Earnings from BEA REIS on pages 14 and 25 include the value of benefits while the wages on page 32 from the BLS do not.


2)   Tables and charts may be copied from Excel into any other program, like Word or PowerPoint: highlight the selection, choose
     copy from the edit menu, then open Word or PowerPoint and insert by choosing "Paste Special" in the Edit Menu. We
     recommend that you paste charts as a picture.
3)   This profile also shows business cycles, represented as vertical bars on selected charts.
4)   EPS is updated every year with the latest figures.
5)   All income figures in this profile (except for the graph on the top of page 5) are adjusted for inflation reported in 2006 dollars.




                                                                  Introduction
Grant County, Kentucky                                Demographics, Employment and Income

The following pages (2-25) contain long-term trends in demographics, employment and income. No disclosure restrictions occur in this
section.



In this section you will learn about:

  1. Changes in population, age distribution, household income distribution and housing affordability.
  2. Comparisons of the county to the state and the nation.
  3. Employment and income by type: proprietors versus wage and salary.
  4. Personal income by type: labor versus non-labor income.
  5. The role of transfer payments.
  6. How well does this area recover from recessions?
  7. Trends in government employment.
  8. Earnings per job versus per capita income.
  9. Growth in firms by size and industry type.
  10. Unemployment rates.
  11. Cross-county flow of dollars via commuting.
  12. Trends in agricultural businesses.




Highlights - In Grant County, Kentucky:
These highlights are based on how this area compares to the distribution of all of the counties in the United States. See the methodology
section at the end for more information.
 • Population Growth (Annualized rate, 1970-2006) was fast.
 •   Employment Growth (Annualized rate, 1970-2006) was somewhat fast.
 •   Personal Income Growth (Adjusted for Inflation, Annualized rate, 1970-2006) was fast.
 •   Non-labor Income Share of Total in 2006 was somewhat low.
 •   Median Age* was young.
 •   Per Capita Income (2006) was somewhat low.
 •   Average Earnings Per Job (2006) was somewhat low.
 •   Education Rate* (% of population 25 and over who have a college degree) was somewhat low.
 •   Education Rate* (% of population 25 and over who have less than a high school diploma) was somewhat high.
 •   Employment Specialization* was roughly average.

 •   Rich-Poor Ratio* (for each household that made over $100K, how many households made less than $30K) was roughly average.

     Housing Affordability in 2000 (100 or above means that the median family can afford the median house)* was somewhat less
 •   affordable.

 •   Government share of Total employment was roughly average.
 •   Unemployment Rate in 2007** was somewhat high.



* from 2000 US Census ** from Bureau of Labor Statistics




Demographic, Employment and Income Trends                                                                                          Page 1
Grant County, Kentucky                                                                                                   Population Trends

Population

                                                                                                        Population Trends
                                                            30.0

                                                            25.0                                                                                                  24,788
 •   From 1970 to 2006
     population grew by
                                      Thousands of People



     14,673 people, a 145%                                  20.0
     increase in population.
                                                            15.0

                                                            10.0

 •   At an annual rate, this                                 5.0
     represents an increase
     of 2.5%.
                                                             0.0
                                                                  70

                                                                              73

                                                                                     76

                                                                                            79

                                                                                                   82

                                                                                                          85

                                                                                                                 88

                                                                                                                        91

                                                                                                                               94

                                                                                                                                      97

                                                                                                                                             00

                                                                                                                                                    03

                                                                                                                                                           06
                                                                19

                                                                            19

                                                                                   19

                                                                                          19

                                                                                                 19

                                                                                                        19

                                                                                                               19

                                                                                                                      19

                                                                                                                             19

                                                                                                                                    19

                                                                                                                                           20

                                                                                                                                                  20

                                                                                                                                                         20
The vertical shaded bars on the figure below represent the last five recession periods: November 1973 to March 1975; January 1980 to
July 1980; July 1981 to November 1982; July 1990 to March 1991; March 2001 to November 2001. More information about recessions
is available on the next page.

Population Growth Compared to the State and the Nation
                                                                                                   Population Comparison
                                                                                                    Population Comparison
 •   Over the last 36 years
     population growth in
                                                              300
                                                            300 300
     Grant County, Kentucky
     has outpaced Kentucky                                    250
                                       Population (Index 1970=100)




                                                            250 250                                                                                              242
                                      Population (Index 1970=100)




                                                                                                                                                                   242
                                                                                                                                                                 245
                                     Population (Index 1970=100)




     and the nation.
                                                              200
                                                            200 200

                                                              150
                                                                150                                                                                              145
 •   Population growth is not                                                                                                                                      145
                                                            150                                                                                                  147
                                                                                                                                                                 129
                                                                                                                                                                   129
     generally impacted by                                                                                                                                       130
     national recessions.                                     100
                                                                100
                                                            100
                                                                     5050
                                                             50
                                                                                                                                                           - -
                                                                     - -
 •   Data is indexed by                                                                                                                                    -
     dividing by the value in                               -
                                                              721 7 0
                                                            19 972
                                                            19 774
                                                            19 1 976
                                                            19 978
                                                            19 780
                                                            19 19982
                                                            19 984
                                                            19 986
                                                            19 19 8

                                                                    0
                                                            19 992
                                                            19 19 94
                                                                   96

                                                                   78
                                                               20 00
                                                                   02
                                                                   34

                                                                  066
                                                                   0


                                                              761 3

                                                                   6


                                                              821 9
                                                              841 82

                                                                  85

                                                              901 88


                                                                   1

                                                              9619 4




                                                              0220 0
                                                            19 1 97




                                                                  98
                                                                  99




                                                               8999




                                                               40 0

                                                               20 0




     1970 times 100. A
                                                              781 7




                                                                  9




                                                            20 0
                                                               499




                                                               099




                                                               299
                                                              9419


                                                              9119
                                                              0020


                                                              0220
                                                              0620
                                                                9




                                                                9




                                                               19
                                                              701


                                                              711




                                                              811




                                                              861
                                                              881


                                                              911




     value of 100 indicates
                                                            19




                                                            19




                                                            19
                                                            20


                                                            20
                                                            20




     that it has not changed                                                       Recession Bars
                                                                                           Recession Bars               Grant County, Kentucky
                                                                                                                                Grant County, Kentucky
                                                                                     National Recessions                  Grant County, Kentucky
     since 1970.                                                                   KentuckyKentucky                     United States States
                                                                                                                                United
                                                                                     Kentucky                             United States

Source: BEA REIS 2006 Table CA30




Page 2                                                                                                         Demographic, Employment and Income Trends
Grant County, Kentucky                                                                                                                              Population

How well do we recover from recessions?
An important indicator of economic performance is the ability to recover quickly from recessions.

A recession is defined by the National Bureau of Economic Research as “a significant decline in activity spread across the economy,
lasting more than a few months, visible in industrial production, employment, real income, and wholesale-retail sales.”
The graph below shows how well we have recovered from the last five recessions. The recovery periods are from the end of one
recession (the trough) to the beginning of the next recession (the peak).



This type of graph is repeated throughout the profile to show how the area recovers from recessions compared to the state and the nation.

See www.nber.org/cycles.html for more information about business cycles.




                                                                              Population Growth During Recent Recoveries -
                                                                           Annualized % Change from Trough to Following Peak
 •   In the latest recovery (2001 to
     2006), population growth in
                                                          4.0%
     Grant County, Kentucky (up                                                                                                       3.5%
                                                          3.5%
     1.4%) outpaced the United
     States and Kentucky.                                          3.0%
                                                          3.0%
                                        Annual % Change




 •   Similarly, in the last recovery
     (1991 to 2001), Grant County,
                                                          2.5%
                                                                                                                2.1%
     Kentucky (up 3.5%) grew the                          2.0%
     fastest.
                                                                                                                                                            1.4%
                                                          1.5%
                                                                                                                                                    1.2%
                                                                          1.1% 1.1%
                                                                                                     1.0%                     0.9%                                        0.9%
                                                                                                                                             0.9%
                                                          1.0%
 •   In the recovery from 1982 to
     1990, Grant County,
                                                                                       0.6%                                                                        0.7%

     Kentucky (up 2.1%) grew the                          0.5%
                                                                                              0.2%
     fastest.                                                                                                          0.0%
                                                          0.0%
                                                                  1975 to 1980        1980 to 1981            1982 to 1990           1991 to 2001          2001 to 2006



                                                          Grant County, Kentucky - Population               Kentucky - Population            United States - Population




Source: BEA REIS 2006 Table CA30




Demographic, Employment and Income Trends                                                                                                                                    Page 3
Grant County, Kentucky                                                                                                                                Age and Gender
                                                                                                                                                                           (From EPSC)

•   The population has
    gotten older since
                                Population by Age and Sex
    1990. The median age                                                                                                                                                          Density
    in 2000 is 32.7 years,                                                                                                         40 - 54 (Baby                  Median           (Pop.
    up from 32.2 years in                                                         Total         Under 20 years                     Boom in 2000) 65 years and over Age            per sq.
    1990.                                                                        Number          Number Share                          NumberShare     Number Share                 mi.)
                               Total Population
                                 2000                                              22,384         7,051                   32%           4,463   20%     2,137    10%      32.7      86.1
•   The largest age              1990                                              15,737         4,998                   32%           2,882   18%     1,822    12%      32.2      60.6
    category is 35 to 39         10 Yr. Change                                      6,647         2,053                     0%          1,581   2%        315    -2%       0.5      25.6
    years old (1,852 people
                                 10 Yr. % Change                                        42%             41%                              55%              17%              2%        42%
    or 8.3% of the total).
                               2000 Sex Breakout
                                     Male                                          11,030         3,589                   33%           2,198   20%       888     8%      32.1
•   Total Population in              Female                                        11,354         3,462                   30%           2,265   20%     1,249    11%      33.3
    2000 was 22,384              Male/Female Split                              49% / 51%         51% / 49%                            49% / 51%       42% / 58%
    people, up 42% from
                                                                                                                                       2000 Table SF1 - P12 & 1990 SF1 Table P05 & P12
    15,737 in 1990.

•   The age group that has     In the graphs below, changes in population by age are shown two ways. The "Change in Population" graph
    grown the fastest, as a    illustrates how each age bracket has changed in the last 10 years. The "Change in Share" graph illustrates
    share of total, is 35 to   how each category has changed as a share of total. Note that an age bracket can have an increase in
    39 years , up 693          population while declining as a share of total. The "Change in Share" graph usually demonstrates how the
    people. Their share of     baby boom has caused a demographic shift in the population (growth in the 40-60 age brackets).
    total rose by 0.9%
                               Note: In aggregated profiles, medians are interpolated.

                                      2000 Breakout                                                           Change in Population                       Change in Share of Total
                                                                                                                  (90-2000)                                    (90-2000)
    85 years and over                                175 71                                        102


        80 to 84 years                               201 90                                        62


        75 to 79 years                           264     182                                       65


        70 to 74 years                           290      222                                     36


     65 and 69 years                             319          323                                  50


     60 and 64 years                            429           407                                       213


        55 to 59 years                         535              569                                             458


        50 to 54 years                    666                       654                                             518


        45 to 49 years                    711                       704                                        410


        40 to 44 years                  888                           840                                                 653


        35 to 39 years                  914                               938                                              693


        30 to 34 years                  887                           889                                       452


        25 to 29 years                  850                           845                                           516


        20 to 24 years                   763                        707                                       366


        15 to 19 years                   818                         822                                       407


        10 to 14 years                  854                           924                                     398


          5 to 9 years                  913                               932                                         614


        Under 5 years                   877                           911                                                 634



                         1.5   1.0     0.5            0.0             0.5         1.0     1.5    0.0                             0.5            1.0   -1.0%        0.0%          1.0%
                                     Thousands of People                                                      Thousands of People                          Thousands of People

                                        Male                  Female                                     Change 1990-2000                                       Change in Share

Source: Census 2000 and Census 1990




Page 4                                                                                                                           Demographic, Employment and Income Trends
Grant County, Kentucky                                                      Income Distribution & Housing
                                                                                                                                                 (From EPSC)
Income Distribution -                                            Household Income Distribution (Not adjusted for inflation)
Households
                                       Less than $10,000                                                                                            1,100
                                                                                                                             772
 •   In 1999, for every
     household that made over         $10,000 to $14,999                                                        591
                                                                                                    431
     $100K, there were 6.5            $15,000 to $19,999                                                   555
                                                                                                          535
     households that made                                                                                    579
     under $30K. 10 years             $20,000 to $24,999                                                   549
     earlier, for every household     $25,000 to $29,999                                                  536
                                                                                                                        722
     that made over $100K,                                                                                533
                                      $30,000 to $34,999                                                         627
     there were 41.0 households
     that made under $30K.            $35,000 to $39,999                                        388
                                                                                                                 611
                                      $40,000 to $44,999                                      349
                                                                                                           553
                                                                                  213
 •   Please note that the
     income distribution is not
                                      $45,000 to $49,999                                        399
                                      $50,000 to $59,999                            247
     adjusted for inflation so                                                                                                         914
                                      $60,000 to $74,999                             268
     some of the changes are                                                                                                            942
     due to inflation.                $75,000 to $99,999                    111                                                          1989
                                                                                                                       693
                                    $100,000 to $124,999             40                                                                  1999
                                                                                        271
                                    $125,000 to $149,999         7
                                                                       65
                                       $150,000 or more              35
                                                                            125

                                                           0.0              200.0          400.0        600.0           800.0         1,000.0       1,200.0
                                                                                                      Households


Housing Affordability - Owner Occupied

 •   The housing affordability       Owner Occupied Housing Affordability                                                             1990             2000
     index is 162, which
     suggests that the median
                                     Specified owner-occ. housing units: Median value (2000 $'s)                              $       64,559    $       93,100
     family can afford the
     median house. *                 % of median income necessary to buy the median house                                                15%                 15%
                                     Income required to qualify for the median house                                          $       21,774    $       26,307
 •   Housing has become less
     affordable in the last
                                     Housing Affordability Index: (100 or above means that the median
                                     family can afford the median house.)*                                                               172                 162
     decade, from 172 in 1990
                                     Universe: Specified owner-occupied housing units                                                        Census SF3 - H76
     to 162 in 2000.

                                     Income in:                                                                                       1989             1999
                                     Per capita income                                                                                          $       16,776
                                     Median household income (Adj. for Inflation in 2000 $)                                   $       32,282    $       38,438
                                     Median family income (Adj.for Inflation in 2000 $)                                       $       37,536    $       42,605
                                     Universe: Total population, Households, Families                                              Census SF3 - P82,P53,P77

                                     * Note: The housing affordability figures assume a 20% down payment and that no more than 25%
                                     of a family's income goes to paying the mortgage. It is based on an interest rate of 10.01% in 1990
                                     and 8.03% in 2000. Use this statistic as a comparative, rather than absolute, measure.




Source: Census 2000 and Census 1990




Demographic, Employment and Income Trends                                                                                                                   Page 5
Grant County, Kentucky                                                                                                                          Employment
Long term trend
                                                                      10.0
                                                                           9.0                                                                                            8,771
                                                                           8.0
 •   From 1970 to 2006, 4,800 new jobs




                                              Thousands of Jobs
     were created.                                                         7.0
                                                                           6.0
                                                                           5.0

 •   From 1970 to 2006, the majority of                                    4.0
     job growth, 78% of new jobs, was in
                                                                           3.0
     wage and salary employment
     (people who work for someone                                          2.0
     else).                                                                1.0
                                                                                                                                                                     -
                                                                           0.0
                                                                      70

                                                                                   73

                                                                                          76

                                                                                                 79

                                                                                                        82

                                                                                                               85

                                                                                                                      88

                                                                                                                             91

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                                                                                                                                          19

                                                                                                                                                    20

                                                                                                                                                           20

                                                                                                                                                                  20
 •   Wage and salary employment                                            7.0
     (people who work for someone
                                                                           6.0
     else) contributed 78% of new                                                                                                                                         5,726
                                                       Thousands of Jobs




     employment from 1970 to 2006,                                         5.0
     and 74% of new employment since
                                                                           4.0
     1995.
                                                                           3.0                                                                                            3,045

                                                                           2.0

 •   In 1970, proprietors represented                                      1.0
     49.6% of total employment; by
                                                                           0.0
     2006, they represented 34.7%.
                                                                             70

                                                                                    73

                                                                                            76

                                                                                                   79

                                                                                                           82

                                                                                                                  85

                                                                                                                          88

                                                                                                                                 91

                                                                                                                                        94

                                                                                                                                               97

                                                                                                                                                      00

                                                                                                                                                             03

                                                                                                                                                                    06
                                                                           19

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                                                                                            Wage and salary jobs                       Number of proprietors

Wages and Salaries vs. Proprietors
Changes from 1970 to 2006
                                                                                                                                            % of     New    % of
                                                                                                                                       New   New Employm    New
                                                                                  % of                                     % of Employme Employm ent (95- Employ
                                                                  1970            Total           1995           2006      Total nt (70-06)   ent     06)   ment
Total full-time and part-time employment                3,971                                    7,012          8,771                   4,800                     1,759 100.0%
 Wage and salary jobs                                   2,003                    50.4%           4,422          5,726    65.3%          3,723       77.6%         1,304   74.1%


 Number of proprietors                                  1,968                    49.6%           2,590          3,045    34.7%          1,077       22.4%           455   25.9%
     Number of nonfarm proprietors 5/                               653          16.4%           1,433          2,044    23.3%          1,391       29.0%           611   34.7%
     Number of farm proprietors                         1,315                    33.1%           1,157          1,001    11.4%           -314          NA          -156       NA

Proprietors include sole proprietorships, partnerships, and tax-exempt cooperatives. A sole proprietorship is an unincorporated business
owned by a person. A partnership is an unincorporated business association of two or more partners. A tax-exempt cooperative is a
nonprofit business organization that is collectively owned by its members.

Wage and salary employment refers to employees.
Source: BEA REIS 2006 Table CA30




Page 6                                                                                                          Demographic, Employment and Income Trends
Grant County, Kentucky                                                                                                       Employment

How well do we recover from recessions?
                                                                                Employment During Recent Recoveries -
 •   In the latest recovery
     (2001 to 2006),                                                       Annualized % Change from Trough to Following Peak
     employment growth in the                              4.5%
     United States (up 1.3%)                               4.0%     3.8%                            3.8%
     has outpaced Kentucky                                 3.5%                                                     3.2%
     and Grant County,                                                      2.9%
                                                           3.0%
                                         Annual % Change
     Kentucky.                                                         2.4%                                2.5%
                                                           2.5%                                        2.1%

 •   Alternatively, in the last                                                                                         1.9%1.9%
                                                           2.0%
     recovery (1991 to 2001),                                                                                                             1.3%
                                                           1.5%                                                                       1.1%
     Grant County, Kentucky                                                                 0.9%
     (up 3.2%) grew the                                    1.0%
                                                                                                                                   0.5%
     fastest.                                              0.5%
                                                           0.0%
                                                           -0.5%                    -0.2%
 •   In the recovery from 1982
     to 1990, Grant County,                                -1.0%
                                                                                        -0.4%


     Kentucky (up 3.8%) grew                                       1975 to 1980 1980 to 1981 1982 to 1990 1991 to 2001 2001 to 2006
     the fastest.
                                                           Grant County, Kentucky - Employment       Kentucky - Employment
                                                           United States - Employment




Job Growth Compared to the State and the Nation

 •   Over the last 36 years
     population growth in Grant
                                                                               Jobs Compared to the State and the Nation
                                                           250
     County, Kentucky has
     outpaced Kentucky and                                                                                                                       221
     the nation.
                                                           200                                                                                   195
                                   Jobs (Index 1970=100)




                                                                                                                                                 182

 •   Some areas can
     experience employment                                 150
     gains even during
     recessions. If so, check
     to see how much is due to                             100
     migration and population
     changes.
                                                            50

                                                                                                                                             -
                                                             0
                                                             70
                                                             72
                                                             74
                                                             76
                                                             78
                                                             80
                                                             82
                                                             84
                                                             86
                                                             88
                                                             90
                                                             92
                                                             94
                                                             96
                                                             98
                                                             00
                                                             02
                                                             04
                                                             06
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           19
                                                           20
                                                           20
                                                           20
                                                           20




                                                                              National Recessions                 Grant County, Kentucky
                                                                              Kentucky                            United States




Source: BEA REIS 2006 Table CA30




Demographic, Employment and Income Trends                                                                                                              Page 7
Grant County, Kentucky                                                                                                                            Personal Income
Long term trend
                                                                                                                         Total Personal Income
• From 1970 to 2006, million in
                     personal
                                                                               700.0




                                         Income (Millions of 2006 $)
  income added $437
    real terms.                                                                600.0                                                                                                       591

                                                                               500.0
•   The annualized growth rate was
    3.8%.                                                                      400.0
                                                                               300.0
                                                                               200.0
                                                                               100.0
                                                                                                                                                                                     -
                                                                                     0.0
                                                                                      70

                                                                                              73

                                                                                                      76

                                                                                                             79

                                                                                                                    82

                                                                                                                           85

                                                                                                                                    88

                                                                                                                                            91

                                                                                                                                                   94

                                                                                                                                                          97

                                                                                                                                                                   00

                                                                                                                                                                          03

                                                                                                                                                                                 06
                                                                                    19

                                                                                            19

                                                                                                    19

                                                                                                           19

                                                                                                                  19

                                                                                                                         19

                                                                                                                                  19

                                                                                                                                          19

                                                                                                                                                 19

                                                                                                                                                        19

                                                                                                                                                                 20

                                                                                                                                                                        20

                                                                                                                                                                               20
Importance of Proprietors
                                                                                    180.0
                                                      Income (Millions of 2006 $)




•   In the last 36 years, wage and
    salary disbursements grew at an
                                                                                    160.0
                                                                                                                                                                                           150
                                                                                    140.0
    annual rate of 3.2%, outpacing
                                                                                    120.0
    proprietors' income which was
                                                                                    100.0
    roughly unchanged.
                                                                                     80.0
                                                                                     60.0
                                                                                     40.0
                                                                                     20.0                                                                                                  21

                                                                                      0.0
                                                                                       70

                                                                                               73

                                                                                                       76

                                                                                                               79

                                                                                                                      82

                                                                                                                             85

                                                                                                                                     88

                                                                                                                                            91

                                                                                                                                                   94

                                                                                                                                                          97

                                                                                                                                                                   00

                                                                                                                                                                          03

                                                                                                                                                                                 06
                                                                                     19

                                                                                             19

                                                                                                     19

                                                                                                             19

                                                                                                                    19

                                                                                                                           19

                                                                                                                                   19

                                                                                                                                          19

                                                                                                                                                 19

                                                                                                                                                        19

                                                                                                                                                                 20

                                                                                                                                                                        20

                                                                                                                                                                               20
                                                                                                      Wage and salary disbursements                           Proprietors' income




Wages and Salaries vs. Proprietors
                                                                                                      1970                         1995                          2006             New          % of
                                                                                                      % of                         % of                          % of          Income          New
All income in millions of 2006 dollars                                                       1970    Labor               1995     Labor             2006        Labor            70-06      Income


Labor Sources                                                                                118     100%                  278    100%              413         100%                296     100.0%
 Wage and salary disbursements                                                                48      41%                  102     37%              150          36%                102         34.5%
 Proprietors' income                                                                          27      23%                  18       7%                  21        5%                 (6)          NA
    Nonfarm proprietors' income                                                               16      14%                  24       9%                  26        6%                  9          3.2%
    Farm proprietors' income                                                                  11       9%                   (6)     -2%                 (5)      -1%                (16)          NA




Wage and salary is monetary remuneration of employees, including employee contributions to certain deferred compensation programs,
such as 401(K) plans.
Proprietors' income includes income from sole proprietorships, partnerships and tax-exempt cooperatives. A sole proprietorship is an
unincorporated business owned by a person. A partnership is an unincorporated business association of two or more partners. A tax-
exempt cooperative is a nonprofit business organization that is collectively owned by its members.

Source: BEA REIS 2006 Table CA05N and CA30




Page 8                                                                                                                           Demographic, Employment and Income Trends
Grant County, Kentucky                                                                                                           Proprietors
Definitions:
“Proprietors” refers to employment and income from sole proprietorships, partnerships, and tax-exempt cooperatives.
“Wage and salary” refers to employees; people who work for someone else.

Are proprietors an important indicator of economic health?
Growth of proprietor employment and income can be a healthy sign that opportunities for entrepreneurship exist. Another way to gauge
the health of small business growth is to look at changes in businesses by type and size of establishment (pages 16-18).
Growth of proprietors can also mean that a rising number of people in the community want to (or need to) have side jobs in addition to
their wage and salary jobs. When this is the case, earnings from second jobs can pull down average wages. To see if this is a sign of
stress, look for other potential stress indictors in this profile: unemployment rates over time and changes in earnings per job.

Proprietors' Share of Total (Income vs. Employment)
                                                                    60%
 •   In 2006, proprietors' share of total
     employment (35%) was higher
                                                                    50%
     than proprietors' share of total
     income (4%) .
                                                                    40%
                                               Share of Total




                                                                                                                                                   35%
 •   From 1970 to 2006, proprietors'
     income share of total fell by
                                                                    30%
     79.9%, while proprietors'
     employment share of total fell by                              20%
     29.9%.
                                                                    10%
                                                                                                                                                   4%
                                                                     0%
                                                                      70

                                                                      73

                                                                      76

                                                                      79

                                                                      82

                                                                      85

                                                                      88

                                                                      91

                                                                      94

                                                                      97

                                                                      00

                                                                      03

                                                                      06
                                                                    19

                                                                    19

                                                                    19

                                                                    19

                                                                    19

                                                                    19

                                                                    19

                                                                    19

                                                                    19

                                                                    19

                                                                    20

                                                                    20

                                                                    20
How are Proprietors Doing?
                                                                                                  Employment          Income
 •   From 1970 to 2006, average
     wage and salary disbursements
                                                                    35.0
     grew at an annualized rate of
     0.2% (adjusted for inflation),                                 30.0
     faster than average nonfarm
                                              Thousands of 2006 $




     proprietors' income which fell by                                                                                                             26,224
                                                                    25.0
     1.9%.
                                                                    20.0
 •   In 2006, average wage and
     salary disbursements were                                      15.0
     $26,224 (adjusted for inflation),                                                                                                             12,531
     more than average nonfarm                                      10.0
     proprietors' income ($12,531).
                                                                     5.0

 •   In 1970, it was the other way
     around. Average nonfarm
                                                                     0.0
     proprietors' income was $24,722
                                                                      70

                                                                            73

                                                                                  76

                                                                                        79

                                                                                              82

                                                                                                    85

                                                                                                          88

                                                                                                                91

                                                                                                                      94

                                                                                                                            97

                                                                                                                                  00

                                                                                                                                        03

                                                                                                                                              06




     (adjusted for inflation), more than
                                                                    19

                                                                           19

                                                                                 19

                                                                                       19

                                                                                             19

                                                                                                   19

                                                                                                         19

                                                                                                               19

                                                                                                                     19

                                                                                                                           19

                                                                                                                                 20

                                                                                                                                       20

                                                                                                                                             20




     average wage and salary
     disbursements ($24,047).
                                                                                       Average wage and salary disbursements
                                                                                       Average nonfarm proprietors' income
 •   If these shares vary widely, it
     suggests that proprietors and
     wage earners have different
     earnings.
Source: BEA REIS 2006 Table CA30




Demographic, Employment and Income Trends                                                                                                                Page 9
Grant County, Kentucky                                                                                                  Non-labor Income
The term "Non-Labor Income" is also referred to by some economists as "Non-Earnings Income". It consists of:

•   Dividends, Interest and Rent (collectively often referred to as money earned from investments).

•   Transfer Payments (payments from governments to individuals such as Medicare, Social Security, unemployment compensation,
    disability insurance payments and welfare). See the next page for a breakout of transfer payments.


                                                                                            Non-labor Income Share of Total Income
                                                                        40%


                                                                        35%
•   In the last 36 years, non-
    labor sources grew at an
    annual rate of 4.5%,
                                                                        30%                                                                              30%
    outpacing labor sources
    which grew at a 3.6% rate.
                                              Percent of Total Income




                                                                        25%


•   30.0% of total personal
    income in 2006 was from
                                                                        20%

    non-labor sources.
                                                                        15%


                                                                        10%
•   32.3% of new income
    from 1970 to 2006 was
    from non-labor sources.                                             5%


                                                                        0%
                                                                          70

                                                                          73

                                                                          76

                                                                          79

                                                                          82

                                                                          85

                                                                          88

                                                                          91

                                                                          94

                                                                          97

                                                                          00

                                                                          03

                                                                          06
                                                                        19

                                                                        19

                                                                        19

                                                                        19

                                                                        19

                                                                        19

                                                                        19

                                                                        19

                                                                        19

                                                                        19

                                                                        20

                                                                        20

                                                                        20
                                         Non-labor income under estimates retirement income because it does not include pensions (401Ks).


Labor vs. Non-Labor
                                                                          1970                 1995              2006      New        % of     % Chg           % Chg

                                                                              % of             % of              % of    Income       New    Ann. Rate    Ann. Rate
All income in millions of 2006
dollars                                      1970                         Total      1995      Total     2006   Total      70-06   Income        70-06         95-06
Total Personal Income                        154                          100%       405      100%       591    100%       437     100.0%        3.8%           3.5%
 Labor Sources                               118                              77%    278       69%       413     70%       296       67.7%       3.6%           3.7%
 Non-Labor Sources                                  36                        23%    127       31%       177     30%       141       32.3%       4.5%           3.1%
    Dividends, interest, and rent                   17                        11%     54       13%        53      9%        36       8.3%        3.3%          -0.2%
    Personal current transfer receipts              20                        13%     73       18%       125     21%       105       24.1%       5.3%           5.0%


Percentages do not add to 100 because of adjustments made by BEA, such as residence, social security, and others.




Source: BEA REIS 2006 Table CA30



Page 10                                                                                                    Demographic, Employment and Income Trends
Grant County, Kentucky                                                                                             Transfer Payments

Components of Transfer Payments
                                                                                                                            New   % of
                                                                                     % of                     % of      Payments  New
                                                                                     Total                    Total       1970 to Pay-          Change in Share of
All figures in millions of 2006 dollars                                         1970   TP                2006   TP          2006 ments          Total (1970 - 2006)
Total transfer payments                                                        19.6                  124.7                    105.2

Government payments to individuals                                             18.3        93%       117.7      94%            99.5    94.6%
    Retirement & disab. insurance benefit payments                             11.1        57%           48.1   39%            37.0    35.2%
    Medical payments                                                            3.3        17%           49.0   39%            45.7    43.5%
    Income maintenance benefit payments ("welfare")                             1.6        8%            13.9   11%            12.4    11.8%
    Unemployment insurance benefit payments                                     0.1        1%             3.5    3%             3.4     3.2%
    Veterans benefit payments                                                   2.0        10%            2.8    2%             0.9     0.8%
    Federal educ. & trng. asst. pay. (excl. vets)                               0.1    0.7%               0.3   0.3%            0.2     0.2%
    Other payments to individuals                                               -      0.0%               0.0   0.0%            0.0     0.0%
Payments to nonprofit institutions *                                            0.7        4%             5.8    5%             5.0     4.8%
Business payments to individuals                                                0.6        3%             1.2    1%             0.6     0.6%
                                                                                                                                               -50%    0%        50%
Age-related (Retirement, Disability & Medicare)                                13.0        67%           73.8   59%            60.8    57.8%




Trends in Non-Labor Income by Type
• The largestIncome are from
  Non-Labor
              components of
                                                                                             Trends in Non Labor Income
    Age-related (Retirement,                                   80.0
    Disability & Medicare).                                                                                                                                 74
                                                               70.0
                                                               60.0
                                          Millions of 2006 $




                                                                                                                                                            53
                                                               50.0
•   In 2006 welfare represented
    11.2% of transfer payments,                                40.0
    and 2.4% of total personal
    income. This is up from                                    30.0
    1970 and down slightly from                                20.0
    1980.                                                                                                                                                   14
                                                               10.0
                                                                0.0
                                                                 70

                                                                        73

                                                                               76

                                                                                      79

                                                                                             82

                                                                                                    85

                                                                                                           88

                                                                                                                  91

                                                                                                                         94

                                                                                                                                97

                                                                                                                                        00

                                                                                                                                               03

                                                                                                                                                      06




Components of Transfer
                                                               19

                                                                      19

                                                                             19

                                                                                    19

                                                                                           19

                                                                                                  19

                                                                                                         19

                                                                                                                19

                                                                                                                       19

                                                                                                                              19

                                                                                                                                      20

                                                                                                                                             20

                                                                                                                                                    20




                                                                                            Age-related (Retirement, Disability & Medicare)
Payments                                                                                    Dividends, Interest & Rent
                                                                                            Income Maintenance (Welfare)
•   In 2006, 59% of Transfer
    Payments were from age-
    related sources (retirement,
    disability, insurance
    payments, and Medicare),
    while 11.2% was from
    welfare.


Source: BEA REIS 2006 Table CA35




Demographic, Employment and Income Trends                                                                                                                   Page 11
Grant County, Kentucky                                                                                                         Personal Income
How well do we recover from recessions?

                                                                                           Income During Recent Recoveries -
                                                                                   Annualized % Change from Trough to Following Peak
                                                                  6.0%      5.5%
 •   In the latest recovery (2001
     to 2006), income growth in                                   5.0%
                                                                                                                                4.9%

     the United States (up 2.0%)    Annual % Change (2006 $)
     outpaced Grant County,                                       4.0%                                        3.4%   3.3%
     Kentucky and Kentucky.                                                    2.7%
                                                                                                                                       2.9%
                                                                  3.0%                                                             2.6%
                                                                                   2.4%
                                                                                                                 2.2%                                 2.0%
                                                                                                     1.8%                                     1.7%
                                                                  2.0%                                                                            1.6%

 •   Alternatively, in the last
     recovery (1991 to 2001),                                     1.0%                          0.7%

     Grant County, Kentucky (up
     4.9%) grew the fastest.                                      0.0%

                                                                  -1.0%

 •   In the recovery from 1982 to
     1990, Grant County,                                          -2.0%                      -1.5%

     Kentucky (up 3.4%) grew                                               1975 to 1980     1980 to 1981     1982 to 1990      1991 to 2001   2001 to 2006
     the fastest.

                                                                          Grant County, Kentucky - Income      Kentucky - Income       United States - Income


Income Growth Compared to the State and the Nation


 •   Over the last 36 years
     income growth in Grant                                                               Income Compared to the State and the Nation
     County, Kentucky has                                         450
     outpaced Kentucky and the
     nation.                                                      400
                                                                                                                                                             384

                                                                  350
                                        Income (Index 1970=100)




 •   Some areas can experience
     income gains even during                                     300
     the recessions. If so, check
                                                                  250                                                                                        254
     to see how much of the                                                                                                                                  235
     change is due to changes in                                  200
     earnings per job,
     employment, migration and                                    150
     population changes.
                                                                  100

                                                                   50
                                                                                                                                                         -
                                                                    0
                                                                    70
                                                                    72
                                                                    74
                                                                    76
                                                                    78
                                                                    80
                                                                    82
                                                                    84
                                                                    86
                                                                    88
                                                                    90
                                                                    92
                                                                    94
                                                                    96
                                                                    98
                                                                    00
                                                                    02
                                                                    04
                                                                    06
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  19
                                                                  20
                                                                  20
                                                                  20
                                                                  20




                                                                                     National Recessions                    Grant County, Kentucky
                                                                                     Kentucky                               United States




Source: BEA REIS 2006 Table CA30




Page 12                                                                                                     Demographic, Employment and Income Trends
Grant County, Kentucky                                                                                                              Government Employment

                                                                                                                      Government Employment by Type
 •   The majority of the growth
     in government employment
                                                              1,200.0
                                                                                                                                                                                         1,105
     since 1970 has been in
                                                              1,000.0
     state and local government
     (720 jobs).
                                       Jobs                                         800.0

                                                                                    600.0

                                                                                    400.0

                                                                                    200.0
                                                                                                                                                                                         77
                                                                                                                                                                                         56
                                                                                           0.0
                                                                                            70

                                                                                                    73

                                                                                                           76

                                                                                                                  79

                                                                                                                         82

                                                                                                                                 85

                                                                                                                                        88

                                                                                                                                               91

                                                                                                                                                      94

                                                                                                                                                             97

                                                                                                                                                                    00

                                                                                                                                                                            03

                                                                                                                                                                                   06
                                                                                          19

                                                                                                  19

                                                                                                         19

                                                                                                                19

                                                                                                                       19

                                                                                                                               19

                                                                                                                                      19

                                                                                                                                             19

                                                                                                                                                    19

                                                                                                                                                           19

                                                                                                                                                                  20

                                                                                                                                                                          20

                                                                                                                                                                                 20
                                                                                                         Federal, civilian             Military             State and local


                                                                                                                Government Employment as a Share of Total
                                                        18%
 •   Is the size of government
     getting bigger? One way to
                                                        16%
     answer this is to look at
     whether government                                 14%                                                                                                                              14%
                                  Share of Total Jobs




     employment has grown. If
                                                        12%
     so, what type of
     government employment,                             10%
     and how does it compare
                                                         8%
     to population growth?
                                                         6%
                                                         4%
                                                         2%
                                                         0%
                                                          70


                                                                                             73


                                                                                                      76


                                                                                                             79


                                                                                                                     82


                                                                                                                               85


                                                                                                                                      88


                                                                                                                                             91


                                                                                                                                                    94


                                                                                                                                                           97


                                                                                                                                                                    00


                                                                                                                                                                           03


                                                                                                                                                                                   06
                                                        19


                                                                                           19


                                                                                                    19


                                                                                                           19


                                                                                                                   19


                                                                                                                             19


                                                                                                                                    19


                                                                                                                                           19


                                                                                                                                                  19


                                                                                                                                                         19


                                                                                                                                                                  20


                                                                                                                                                                         20


                                                                                                                                                                                 20




                                                                                                                  Government Employment per 100 People
                                                        Government Jobs per 100 People




                                                                                         5.4
                                                                                         5.2
                                                                                         5.0                                                                                               5

                                                                                         4.8
                                                                                         4.6
                                                                                         4.4
                                                                                         4.2
                                                                               70


                                                                                                   73

                                                                                                          76


                                                                                                                 79

                                                                                                                        82


                                                                                                                                85


                                                                                                                                        88

                                                                                                                                               91


                                                                                                                                                      94

                                                                                                                                                             97


                                                                                                                                                                     00

                                                                                                                                                                             03


                                                                                                                                                                                    06
                                                                             19


                                                                                                 19

                                                                                                        19


                                                                                                               19

                                                                                                                      19


                                                                                                                              19


                                                                                                                                      19

                                                                                                                                             19


                                                                                                                                                    19

                                                                                                                                                           19


                                                                                                                                                                   20

                                                                                                                                                                           20


                                                                                                                                                                                  20




Source: BEA REIS 2006 Table CA25 and CA25N




Demographic, Employment and Income Trends                                                                                                                                                Page 13
Grant County, Kentucky                                                                                                                                 Earnings Per Job
                                                                             Total Wages Earned
                                        Average Earnings per Job = ----------------------------------------
                                                                               Total # of Workers
 •   Average earnings per job,
     adjusted for inflation, have                                                                                   Earnings Per Job & Per Capita Income
     risen from $20,321 in 1970 to                                                          30.0




                                                                      Thousands of 2006 $
     $23,904 in 2006.                                                                       25.0                                                                                           23,904
                                                                                                                                                                                           23,832
                                                                                            20.0
 •   In 2006, Average earnings
     per job in Grant County,
                                                                                            15.0

     Kentucky ($23,904) were                                                                10.0
     lower than the state                                                                    5.0
     ($38,895) and the nation                                                                                                                                                          -
     ($47,286).                                                                              0.0
                                                                                              70

                                                                                                     73

                                                                                                             76

                                                                                                                    79

                                                                                                                           82

                                                                                                                                  85

                                                                                                                                         88

                                                                                                                                                91

                                                                                                                                                       94

                                                                                                                                                              97

                                                                                                                                                                     00

                                                                                                                                                                            03

                                                                                                                                                                                   06
How well do we recover from
                                                                                            19

                                                                                                   19

                                                                                                           19

                                                                                                                  19

                                                                                                                         19

                                                                                                                                19

                                                                                                                                       19

                                                                                                                                              19

                                                                                                                                                     19

                                                                                                                                                            19

                                                                                                                                                                   20

                                                                                                                                                                          20

                                                                                                                                                                                 20
                                                                                                    National Recessions                Per Capita Income           Real Earnings Per Job
recessions?
 •   In the current recovery (2001
     to 2006), earnings per job                                                 2.0%
                                                                                                                             Earnings Per Job

                                                                                                                                              0.9%     1.1% 1.2%
                                                                                                                                                          0.9%               0.9%
     growth in Kentucky (up 0.9%)
                                           Annual % Change (2006 $)




                                                                                1.0%                                                                                            0.7%
     have outpaced the United                                                                                                          0.1%                               0.0%
     States and Grant County,                                                   0.0%
     Kentucky.                                                                                        -0.1%                               0.0%
                                                                          -1.0%                           -0.7%          -0.6%
 •   Alternatively, in the last
     recovery (1991 to 2001), the                                         -2.0%
                                                                                                                             -1.2%
                                                                                                   -1.8%
     United States (up 1.2%) grew
                                                                          -3.0%
     the fastest.
                                                                          -4.0%
                                                                                                                    -4.2%
                                                                          -5.0%
 •   In the recovery from 1982 to
     1990, the United States (up                     1975 to 1980 1980 to 1981 1982 to 1990 1991 to 2001 2001 to 2006
     0.9%) grew the fastest.              Grant County, Kentucky - Earnings Per Job Kentucky - Earnings Per Job
                                          United States - Earnings Per Job

Reasons why earnings per job may change over time:
 1) Average earnings per job statistics include full and part-time employment. In some counties only a portion of the eligible workforce
    works full-time, driving down wage statistics. Run an EPSC profile to see the percentage of people working full-time.
 2) Communities with an increase in tourism may see a decline in earnings due to a rise in seasonal (part-time) workers.
 3) Communities that have established themselves as regional retail trade centers may see a decline in wages due to the low wages paid
    in retail trade.
 4) Structural changes may have resulted in the loss of relatively high-wage occupations. Look at the long-term trends in employment, by
    industry, and compare to the nation and other counties. Are the changes local, or part of nation-wide trends?
 5) More women have entered the workforce, and because of relatively lower pay, or because of fewer hours worked (depending on the
    region both may occur), earnings may decline over time. For a comparison of male versus female income run an EPSC profile.

 6) Earnings will decline if job growth is primarily from low-wage services industries. Look at the breakdown of different industrial sectors to
    see the type of service industries that are growing. Does the community have what it takes (education, airports, amenities, etc.) to
    attract the high-wage service industries (engineering, finance, etc.)?

 7) People may be choosing to live in some communities for quality of life reasons. In some areas the increase in population can outpace
    the rate of job creation, thereby flooding the labor market and causing a downturn in wages. Look at the growth rates of population
    relative to growth in jobs and personal income.

Source: BEA REIS 2006 Table CA30




Page 14                                                                                                                              Demographic, Employment and Income Trends
Grant County, Kentucky                                                                                                          Per Capita Income
                                                                                  Total Personal Income
                                                                     PCI = ---------------------------------------
                                                                                           Population

Per capita income is often used as a measure of economic performance, but it should be combined with changes in earnings per
job for a realistic picture of economic health:
Since total personal income includes income from 401(k) plans as well as other non-labor income sources like transfer payments,
dividends, and rent, it is possible for per capita income to rise, even if the average wage per job declines over time. In other words,
non-labor sources of income can cause per capita income to rise, even if people are earning less per job.



                                                                                                            Per Capita Income
                                                                    30.0
 •   Per capita income, adjusted
                                                                    25.0
                                       Thousands of 2006 $




     for inflation, has risen from                                                                                                                                     23,832
     $15,208 in 1970 to $23,832                                     20.0
     in 2006.
                                                                    15.0

                                                                    10.0

                                                                     5.0
 •   In 2006, per capita income
     in Grant County, Kentucky
                                                                                                                                                                   -
                                                                     0.0
     ($23,832) was lower than
     the state ($29,729) and the
                                                                      70

                                                                             73

                                                                                      76

                                                                                             79

                                                                                                    82

                                                                                                            85

                                                                                                                       88

                                                                                                                               91

                                                                                                                                      94

                                                                                                                                             97

                                                                                                                                                    00

                                                                                                                                                           03

                                                                                                                                                                  06
                                                                    19

                                                                           19

                                                                                    19

                                                                                           19

                                                                                                  19

                                                                                                          19

                                                                                                                     19

                                                                                                                             19

                                                                                                                                    19

                                                                                                                                           19

                                                                                                                                                  20

                                                                                                                                                         20

                                                                                                                                                                20
     nation ($36,714).
                                                                                             National Recessions               Grant County, Kentucky


How well do we recover from recessions?
                                                                                                           Per Capita Income
 •   In the current recovery
     (2001 to 2006), per capita                                     3.0%
                                                                             2.5%                                            2.4%
     income growth in the United                                                                                         2.1%

     States (up 1.1%) has                                           2.0%                                                                   1.7%1.7%
                                         Annual % Change (2006 $)




                                                                                  1.6%
                                                                                      1.4%                            1.3%             1.4%
     outpaced Kentucky and                                                                                                                                  0.9%1.1%
                                                                                                         0.8%
     Grant County, Kentucky.                                        1.0%                             0.6%
                                                                                                                                                         0.3%

                                                                    0.0%
 •   Alternatively, in the last
     recovery (1991 to 2001),
                                                          -1.0%
     Kentucky (up 1.7%) grew
     the fastest.
                                                          -2.0%
                                                                                                -2.1%
 •   In the recovery from 1982 to
     1990, the United States (up
                                                          -3.0%
     2.4%) grew the fastest.                                               1975 to 1980 1980 to 1981 1982 to 1990 1991 to 2001 2001 to 2006
                                                                                                Grant County, Kentucky - Per Capita Income
                                                                                                Kentucky - Per Capita Income
                                                                                                United States - Per Capita Income

Source: BEA REIS 2006 Table CA30




Demographic, Employment and Income Trends                                                                                                                                   Page 15
Grant County, Kentucky                                                               Firms by Industry (SIC)

The advantage of this data source is that it never has disclosure restrictions. This source also releases data for hundreds of sectors
(available on demand). The data on this page are from the US Census County Business Patterns, which unlike the REIS data, does NOT
include proprietors, government, household services or railroad workers. If available, we encourage you to look at employment and
income data from BEA REIS starting on page 26 as well.

                                                              Number of Establishments by Industry
Growth
                                      160.0
 • Missing data prevent
   this ranking

                                      140.0                                                                            Retail Trade

                                                                                                      125              Services
                                      120.0
                              This page is blank because the system does not                                           Construction
                              contain County Business Patterns data for this geography.
                                 100.0                                                                100

Decline                       A blank version of this page will be inserted when you print.                            Trans., Comm.,
                                                                                                                       & Util.
                              Firms




 • Missing data prevent
   this ranking
                                       80.0
                                                                                                                       Finance, Ins., &
                                                                                                      70               R. Estate
                                       60.0                                                                            Wholesale
                                                                                                                       Trade
                                                                                                                       Manufacturing
                                       40.0
                                                                                                      31
                                                                                                      30
                                                                                                      25               Agricultural
                                       20.0                                                                            Services
                                                                                                      16
                                                                                                                       Nonclassifiable
                                                                                                      7
                                                                                                      3
                                        0.0                                                           -
                                                                                                                       Mining
                                          77

                                          79

                                          81

                                          83

                                          85

                                          87

                                          89

                                          91

                                          93

                                          95

                                          97
                                        19

                                        19

                                        19

                                        19

                                        19

                                        19

                                        19

                                        19

                                        19

                                        19

                                        19




Firms by Industry
                                              Shr. of             Shr. of              Shr. of      New Firms          Change in Share
                                       1977    Total      1987     Total     1997       Total     77-97 Shr of Tot          of Total
Total                                   207                268                 407                  200
Agricultural Services                     2    1.0%           4     1.5%         7       1.7%         5       2.5%
Mining                                 #N/A    #N/A       #N/A      #N/A     #N/A        #N/A      #N/A         #N/A
Construction                             25   12.1%         34    12.7%         70     17.2%         45      22.5%
Manufacturing                             6    2.9%           8     3.0%        16       3.9%        10       5.0%
Trans., Comm., & Util.                    8    3.9%           9     3.4%        31       7.6%        11       5.5%
Wholesale Trade                          14    6.8%         13      4.9%        25       6.1%        11       5.5%
Retail Trade                             84   40.6%         99    36.9%        125     30.7%         41      20.5%
Finance, Ins., & R. Estate               15    7.2%         16      6.0%        30       7.4%        15       7.5%
Services                                 49   23.7%         76    28.4%        100     24.6%         51      25.5%
Nonclassifiable                           4    1.9%           9     3.4%         3       0.7%        -1          NA
                                                                                                                        -20 -10 0% 10%
                                                                                                                         % %




Data ends in 1997 because the CBP switched to a different classification system (NAICS) in 1997.

Source: Census County Business Patterns




Page 16                                                                         Demographic, Employment and Income Trends
Grant County, Kentucky                                           Firms by Industry in 2005 (NAICS)
                                                       Firms by Industry in 2005


     Forestry, fishing, hunting, and agriculture
                                         Mining
                           Educational services
     Management of companies & enterprises
                                         Utilities page is blank because the system does not
                                             This
                   Unclassified establishments
                                             contain County Business Patterns data for this geography.
              Arts, entertainment & recreation
                                             A blank version of this page will be inserted when you print.
                                    Information
                                Wholesale trade
     Admin, support, waste mgt, remed. Serv.
                                  Manufacturing
                 Transportation & warehousing
                 Real estate & rental & leasing
   Professional, scientific & technical services
                           Finance & insurance
            Health care and social assistance
                  Other services (except public
             Accommodation & food services
                                   Construction
                                    Retail trade

                                                0.0           20.0          40.0          60.0          80.0        100.0         120.0
                                                                                         Firms



Firms by size and industry in 2005
                                                                                         Number of Employees per Firm

                                                                                                                                              1000
                                                                                                                    100-    250-     500-       or
                                                      Total           1-4          5-9    10-19   20-49    50-99     249     499      999     more

Forestry, fishing, hunting, and ag. support
Mining
Utilities                                                2            0             1        1      0          0      0       0           0     0
Construction                                            59           50             6        2      0          1      0       0           0     0
Manufacturing                                           18            7             3        3      0          3      2       0           0     0
Wholesale trade                                         11            8             0        2      0          0      1       0           0     0
Retail trade                                           104           46            28       18     11          0      0       1           0     0
Transportation & warehousing                            19           14             1        3      1          0      0       0           0     0
Information                                              6            3             1        2      0          0      0       0           0     0
Finance & insurance                                     29           13            14        0      2          0      0       0           0     0
Real estate & rental & leasing                          22           18             2        2      0          0      0       0           0     0
Professional, scientific & technical services           22           16             5        1      0          0      0       0           0     0
Management of companies & enterprises                    1            1             0        0      0          0      0       0           0     0
Admin, support, waste mgt, remed. Serv.                 13           11             1        0      0          1      0       0           0     0
Educational services
Health care and social assistance                       30             7            7        9      5           2     0       0           0     0
Arts, entertainment & recreation                         4             3            1        0      0           0     0       0           0     0
Accommodation & food services                           49            13            9       14      9           3     1       0           0     0
Other services (except public administration)           38            24           12        1      1           0     0       0           0     0
Unclassified establishments                              2             2            0        0      0           0     0       0           0     0
Total                                                  429           236           91       58     29          10     4       1           0     0


Source: Census County Business Patterns




Demographic, Employment and Income Trends                                                                                                 Page 17
Grant County, Kentucky                                                                                                                                Firms by Size

Firms by Size                                                                                           County Business Patterns Number of Establishments
                                                                                                                          Share of total
 •   The size category that
     grew the most was 1-4                                                             100%                                                           1000 or more
                                                                                                                                                      employees
     employees.
                                                                                                                                                      500-999 employees

                                                                                           80%
                                                                                                                                                      250-499 employees
 •   As a share of total, the
     size category that                                                                                                                               100-249 employees
                                                                    Share of Total




     gained the most was 1-4                                                               60%
     employees.
                                                                                                                                                      50-99 employees

                                                                                     This page is blank because the system does not
                                                                                        40%                                                           20-49 employees
                                                                                     contain County Business Patterns data for this geography.
 •   In 2004, 90% of firms
     had fewer than 20
                                                                                     A blank version of this page will be inserted when you print. employees
                                                                                                                                             10-19
     employees.                                                                            20%
                                                                                                                                                      5-9 employees


                                                                                             0%                                                       1-4 employees
                                                                                             77
                                                                                             79
                                                                                             81
                                                                                             83
                                                                                             85
                                                                                             87
                                                                                             89
                                                                                             91
                                                                                             93
                                                                                             95
                                                                                             97
                                                                                             99
                                                                                             01
                                                                                             03
                                                                                             05
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           19
                                                                                           20
                                                                                           20
                                                                                           20
                                                                                                             Change in Share                         Change in Firms
                                                   Share of Total
                                                                                                               (1995-2005)                            (1995-2005)


                                    1000 or
                                     more
                                                                                      1985
                                    500-999                                           1995
                                                                                      2005
                                    250-499
     Number of Employees per Firm




                                    100-249


                                      50-99


                                      20-49


                                      10-19


                                        5-9


                                        1-4


                                              0%     20%      40%                    60%      80% -4%      -2%     0%      2%      4%     -10    0     10     20       30   40


Source: Census County Business Patterns




Page 18                                                                                                                         Demographic, Employment and Income Trends
Grant County, Kentucky                                                                       Unemployment Trends

Annual Average Unemployment Rate Compared to the State and the Nation
                                                                                         Unemployment Rate
                                                          9

 •   In 2007, the                                         8
     unemployment rate was
     5.5%, compared to
                                                          7
     5.5% in the state and
     4.6% in the nation.
                                                          6
                                                         This page is blank because the system does not                                5.5
                                                         contain unemployment data for this geography.
                                                          5
                                               Percent



                                                                                                                                       4.6
                                                         A blank version of this page will be inserted when you print.
 •   Since 1990, the                                      4
     unemployment rate
     varied from from a low                               3
     of 3.9% in 2000 to a
     high of 8.4% in 1992                                 2

                                                          1

                                                          0
                                                           88
                                                           89
                                                           90
                                                           91
                                                           92
                                                           93
                                                           94
                                                           95
                                                           96

                                                         19 7
                                                           98
                                                           99
                                                           00
                                                           01
                                                           02
                                                           03
                                                           04
                                                           05
                                                           06
                                                           07
                                                           9
                                                         19
                                                         19
                                                         19
                                                         19
                                                         19
                                                         19
                                                         19
                                                         19
                                                         19
                                                         19


                                                         19
                                                         20
                                                         20
                                                         20
                                                         20
                                                         20
                                                         20
                                                         20
                                                         20
                                                                    Grant County, KY            Kentucky        United States


Unemployment Rate Seasonality
                                                                              Unemployment Rate Seasonality
                                                 9

                                                 8

                                                 7
 •   This graph illustrates the
     seasonal variation in the                   6
                                                                                                                                         5.7
                                                                                                                                         5.6
     unemployment rate over
                                     Percent




     the last three years. In                    5                                                                                       5.0
     2007, the
     unemployment rate                           4
     varied from from a low
     of 4.6% in November                         3
     2007 to a high of 7.0%
     in February 2007                            2

                                                 1
                                                                                   ay
                                                                      ar




                                                                                                                            ov

                                                                                                                                  ec
                                                      n


                                                                b




                                                                                            n




                                                                                                          g


                                                                                                                p

                                                                                                                      ct
                                                                              r




                                                                                                    l
                                                                                                  Ju
                                                                            Ap
                                                    Ja

                                                              Fe




                                                                                          Ju




                                                                                                        Au


                                                                                                              Se


                                                                                                                      O
                                                                     M




                                                                                  M




                                                                                                                           N

                                                                                                                                 D




                                                                                  2005           2006          2007          2008

Source: Bureau of Labor Statistics




Demographic, Employment and Income Trends                                                                                              Page 19
Grant County, Kentucky                                                                                                                            Commuting

Inflow & Outflows

                                                                                                        Commuting Flows
 •   Commuting data
     suggests that Grant                                            300.0
     County, Kentucky is a                                                                                                                                      284,647
     bedroom community.
     (Income derived from                                           250.0
     people commuting out
                                               Millions of 2006 $



     of the county to work                                          200.0
     exceeds the income                                                               This page is blank because the system does not
     from people commuting                                                            contain commuting data for this geography.
                                                                    150.0
     into the county.) The
                                                                                      A blank version of this page will be inserted when you print.
     net difference
     represents 38.8% of                                            100.0
     total income in the
                                                                                                                                                                57,055
     county.
                                                                     50.0


                                                                      0.0
                                                                        81

                                                                        83

                                                                        85

                                                                        87

                                                                        89

                                                                        91

                                                                        93

                                                                        95

                                                                        97

                                                                        99

                                                                        01

                                                                        03

                                                                        05
                                                                      19

                                                                      19

                                                                      19

                                                                      19

                                                                      19

                                                                      19

                                                                      19

                                                                      19

                                                                      19

                                                                      19

                                                                      20

                                                                      20

                                                                      20
                                                                                                   Inflow of Earnings               Outflow of Earnings


                                                                                                  Net Residential Adjustment
                                                            45.0%

                                                            40.0%

 •   A positive Net
     Residential Adjustment
                                                            35.0%
                                 Share of Total Income




     indicates out-commuting                                30.0%
     for work to other
     counties.                                              25.0%

                                                            20.0%

                                                            15.0%

                                                            10.0%

                                                                    5.0%

                                                                    0.0%
                                                                      81

                                                                              83

                                                                                     85

                                                                                            87

                                                                                                   89

                                                                                                          91

                                                                                                                 93

                                                                                                                        95

                                                                                                                               97

                                                                                                                                      99

                                                                                                                                             01

                                                                                                                                                    03

                                                                                                                                                           05
                                                                    19

                                                                            19

                                                                                   19

                                                                                          19

                                                                                                 19

                                                                                                        19

                                                                                                               19

                                                                                                                      19

                                                                                                                             19

                                                                                                                                    19

                                                                                                                                           20

                                                                                                                                                  20

                                                                                                                                                         20




The Bureau of Economic Analysis (BEA) reports personal income in terms of location of residence. BEA calculates how much money is
earned in the county by people living outside the county (Total Gross Earnings Outflow) and it calculates how much money is brought
into the county by residents who work outside of the county (Total Gross Earnings Inflow). Subtracting one from the other gives the Net
Residence Adjustment. The Inflow and Outflow trends indicate whether the county is closely tied to others in terms of commuting.


Source: BEA REIS 2006 Table CA91




Page 20                                                                                                           Demographic, Employment and Income Trends
Grant County, Kentucky                                                          Agriculture (Business Income)
Farm income figures presented on this page reflect income from farming enterprises (income of the business). The term “farm”
includes farming and ranching, but not agricultural services such as soil preparation services and veterinary services. In contrast, farm
income figures presented in the next section reflect personal income earned by individuals (income of individuals, both proprietors
and wage and salary employees) who work in farming and ranching.

Farm income of businesses differs from individual farm income because it also includes government payments, rent, the value of
inventory change and production expenses. In some areas, net farm income can be negative when production expenses exceed
gross income.

Gross Income, Expenses, and Net Income from Farming and Ranching
                                                                                   % of                                      % of                 % of    70-06
                                                                                  Gross                                     Gross                Gross Change in
All figures in thousands of 2006 dollars                                1970    Income                             1995   Income       2006    Income     Share
Gross Income (Cash + Other)                                           39,624                                 18,921                  12,438
   Cash Receipts from Marketings                                      36,511      92%                        17,391         92%      10,317    82.9%        -9%
                        Livestock & Products                          15,847      40%                             5,991     32%       7,338    59.0%       19%
                        Crops                                         20,664      52%                        11,400         60%       2,979    24.0%       -28%
   Other Income                                                        3,112       8%                             1,529      8%       2,121    17.1%        9%
                        Government Payments                             847        2%                               75       0%        323      2.6%        0%
                        Imputed Rent & Rent Received                   2,265       6%                             1,454      8%       1,798    14.5%        9%
Production Expenses                                                   28,063                                 23,368                  17,957
Realized Net Income (Income - Expenses)                               11,561                                  (4,447)                (5,519)
Value of Inventory Change                                               (764)      -2%                        (1,382)        -7%       663      5.3%        NA
Total Net Income (Inc. corporate farms)                               10,797                                  (5,830)                (4,856)




        Gross Income vs. Production Expenses                                                                      Net Farm Income
                               Gross Income vs. Production Expenses                                                        Net Farm Income
                        60.0
                                                                                                          25.0

                        50.0
                                                                                                          20.0

                        40.0                                                                              15.0
   Millions of 2006 $




                                                                                     Millions of 2006 $




                                                                                                          10.0
                        30.0

                                                                                                           5.0
                        20.0
                                                                                                           0.0
                        10.0
                                                                                                           -5.0

                         0.0                                                                              -10.0
                          70
                          73
                          76
                          79
                          82
                          85
                          88
                          91
                          94
                          97
                          00
                          03
                          06




                                                                                                            70
                                                                                                            73
                                                                                                            76
                                                                                                            79
                                                                                                            82
                                                                                                            85
                                                                                                            88
                                                                                                            91
                                                                                                            94
                                                                                                            97
                                                                                                            00
                                                                                                            03
                                                                                                            06
                        19
                        19
                        19
                        19
                        19
                        19
                        19
                        19
                        19
                        19
                        20
                        20
                        20




                                                                                                          19
                                                                                                          19
                                                                                                          19
                                                                                                          19
                                                                                                          19
                                                                                                          19
                                                                                                          19
                                                                                                          19
                                                                                                          19
                                                                                                          19
                                                                                                          20
                                                                                                          20
                                                                                                          20




                               Gross income      Production expenses

Source: BEA REIS 2006 CD Table CA45




Demographic, Employment and Income Trends                                                                                                                   Page 21
Grant County, Kentucky                               Relative Performance Comparisons

In the following pages (23 - 25) you will learn about:

          1. The degree of economic specialization of the county relative to the nation.


          2. The year-to-year stability of personal income growth, comparing the county to the state and the nation.


          3. The stability of personal income over time, comparing labor versus non-labor income.

          4. If this is a county profile, numerous performance characteristics of the county (population growth, employment growth,
             employment stability, etc.) are used to compare the county to the median county in the country (a “benchmark”).




Page 22                                                                                         Relative Performance Comparisons
Grant County, Kentucky                                                                                        Specialization
This page uses the sectoral composition of the U.S. economy as a benchmark for economic diversity and compares the local sector
breakout to that of the nation. Communities that are heavily reliant on only a few industries may be economically vulnerable to
disruptions. The aim of this page is to quantitatively measure the extent to which the sectoral breakout of the local economy mirrors that
of the US, and if they are different to illustrate the major factors that are contributing to the differences.


Grant County, Kentucky is roughly average, with a specialization score of 142. By comparison, a county that is structured identically to
the US would have a score of 0 (very diverse). The largest observed score in the U.S. is 3,441 (very specialized).


The sectors that most diverge from the US norm are:
 • Over reliance on manufacturing (23.5% compared to 14.1% in the US)
 • Under reliance on professional, scientific, and technical services (2.0% compared to 5.9% in the US)
 • Under reliance on health care and social assistance (7.4% compared to 11.2% in the US)
 • Over reliance on transportation and warehousing (7.3% compared to 4.3% in the US)
The figure below illustrates how the distribution of local employment by sector compares to the nation. The first bar chart compares the
local area to the United States. The second bar chart subtracts one from the other to show where they differ. The closer the bars are to
each other, the more the local economic structure is like that of the US.


Sector Analysis (Sorted by Difference in Share)

                                                   Study     Difference             Employment Shares               Difference in
                                                    Area U.S. in Share                   vs. U.S.                  Shares vs. U.S.
Manufacturing                                       23%    14%          9%
Transportation and warehousing                        7%     4%         3%
Agriculture, forestry, fishing and hunting            3%     1%         1%
Retail trade                                        13%    12%          1%
Accommodation and food services                       7%     6%         1%
Construction                                          8%     7%         1%
Wholesale trade                                       4%     4%         0%
Management of companies and enterprises               0%     0%         0%
Real estate and rental and leasing                    2%     2%         0%
Other services (except public administration)         5%     5%         0%
Mining                                                0%     0%         0%
Utilities                                             1%     1%         0%
Admin & support & waste management services           3%     3%         0%
Public administration                                 4%     5%        -1%
Arts, entertainment, and recreation                   1%     2%        -1%
Finance and insurance                                 3%     5%        -2%
Information                                           1%     3%        -2%
Educational services                                  6%     9%        -2%
Health care and social assistance                     7%   11%         -4%
Professional, scientific, and technical services      2%     6%        -4%
                                                                               0%        10%        20%       30% -5%   0%   5%   10% 15%

                                                                                     Grant County, Kentucky
                                                                                     United States



The above index uses a new improved methodology relative to earlier versions of EPS. It was calculated by summing the squares of the
difference in shares between the local economy and the US for the 20 sectors.
Source: Census 2000 SF3 Table P49.




Relative Performance Comparisons                                                                                                    Page 23
Grant County, Kentucky                                                                                                                                                  Stability

Stability vs. State and Nation

                                                                                                                                Personal Income


                                          Percent Change from the Previous Year (2006 $)
 •   Different regions can
     behave very differently
                                                                                           14%

     during recessions and                                                                 12%
     recoveries.                                                                           10%
                                                                                           8%
                                                                                           6%
 •   Note: Below 0% means
     absolute decline. Above
                                                                                           4%
     0% means absolute                                                                                                                                                                3%
                                                                                           2%                                                                                         2%
     growth, but at different
                                                                                                                                                                                      1%
     rates.
                                                                                           0%
                                                                                           -2%
                                                                                           -4%
                                                                                                                                                                                  -
                                                                                           -6%
                                                                                             70

                                                                                                    73

                                                                                                           76

                                                                                                                  79

                                                                                                                         82

                                                                                                                                85

                                                                                                                                       88

                                                                                                                                              91

                                                                                                                                                     94

                                                                                                                                                            97

                                                                                                                                                                   00

                                                                                                                                                                          03

                                                                                                                                                                                 06
                                                                                           19

                                                                                                  19

                                                                                                         19

                                                                                                                19

                                                                                                                       19

                                                                                                                              19

                                                                                                                                     19

                                                                                                                                            19

                                                                                                                                                   19

                                                                                                                                                          19

                                                                                                                                                                 20

                                                                                                                                                                        20

                                                                                                                                                                               20
                                                                                                                National Recessions                 Grant County, Kentucky
                                                                                                                Kentucky                            United States




Labor vs. Non-Labor Income Stability

                                                                                                                           Non-labor vs. Labor Income
                                                                                             15%
                                   Percent Change from the Previous Year




                                                                                             10%
 •   Non-labor income sources
     can have a stabilizing
     effect on the economy and
     are sometimes, but not                                                                      5%                                                                                   5%
                                                 (2006 $)




     always, counter-cyclical to
     labor income.
                                                                                                 0%                                                                                   0%




                                                                                              -5%

                                                                                                                                                                                  -
                                                                                             -10%
                                                                                               70

                                                                                               73

                                                                                               76

                                                                                               79

                                                                                               82

                                                                                               85

                                                                                               88

                                                                                               91

                                                                                               94

                                                                                               97

                                                                                               00

                                                                                               03

                                                                                               06
                                                                                             19

                                                                                             19

                                                                                             19

                                                                                             19

                                                                                             19

                                                                                             19

                                                                                             19

                                                                                             19

                                                                                             19

                                                                                             19

                                                                                             20

                                                                                             20

                                                                                             20




                                                                                                         National Recessions                Non-labor Income             Labor Income




Source: BEA REIS 2006 Table CA30




Page 24                                                                                                                                                   Relative Performance Comparisons
Grant County, Kentucky                                                      Performance Comparisons
                                                                                        Compared to benchmark area, the county has:
 Benchmark = Median of all Counties in U.S.***                                                      Less Than More Than


                                       Grant County, Kentucky US Median
 Population Growth (Annualized rate, 1970-              2.5%      0.6%
 2006)

 Employment Growth (Annualized rate, 1970-                     2.2%          1.4%
 2006)

 Personal Income Growth (Adjusted for                          3.8%          2.2%
 Inflation, Annualized rate, 1970-2006)

 Non-labor Income Share of Total in 2006                      30.0%         37.4%


 Median Age*                                                    32.7          37.3



 Per Capita Income (2006)                            $       23,832    $   27,413


 Average Earnings Per Job (2006)                     $       23,904    $   30,604



 Education Rate* (% of population 25 and over                  9.4%         14.5%
 who have a college degree)

 Education Rate* (% of population 25 and over                 27.6%         21.0%
 who have less than a high school diploma)

 Employment Specialization*                                     142           155


 Rich-Poor Ratio* (for each household that made                  6.5          8.7
 over $100K, how many households made less
 than $30K)
 Housing Affordability in 2000 (100 or above                    162           186
 means that the median family can afford the
 median house)*
 Change in Housing Affordability* (% Change in                 -6.1%        10.3%
 index from 1990 to 2000) Positive means the
 area is getting more affordable.
 Government share of Total employment                           14%           15%


 Unemployment Rate in 2007**                                   5.5%          4.7%


                                                                                      (2.00)      (1.00)     -           1.00      2.00
                                                                                            # of Standard Deviations from the Median


 All data are from REIS except * are from 2000 US Census and ** is from Bureau of Labor Statistics.
 ***Median is the middle value of a list of numbers. This is different from mean (average), which is the sum of all the numbers in a list
 divided by the number of numbers in the list.




Relative Performance Comparisons                                                                                                    Page 25
Grant County, Kentucky                              Employment and Income by Industry

In the following pages (28-32) you will learn about:

            1. Long-term employment and personal income trends, from 1970 to 2006
            2. How the structure of the economy has changed during the last three decades
            3. How wages vary across different sectors in the economy.


Information for some industries and for some years may not be available from the U.S. Department of Commerce because of
disclosure restrictions.


What is a ‘disclosure restriction’?


A disclosure restriction indicates that a gap exists in the data. The U.S. Department of Commerce suppresses information to avoid
disclosure of confidential information. Generally, the smaller the geographic level of analysis and the smaller the population of the
county, the higher the chances that industry-specific information is suppressed and that disclosure restrictions will occur.


Our model to estimate the disclosure restrictions currently provides estimates for employment and income using the SIC classification
method through 2000 for the western states only.




Page 26                                                                              Employment and Personal Income by Industry
Grant County, Kentucky                                                                Read This First

Important Notes on the Industrial Classification Systems used by EPS
The U.S. Department of Commerce made a transition in how economic information is gathered and organized in 2001.
The Standard Industrial Classification System (SIC) covered the period from 1970 to 2000; the North American
Industrial Classification System (NAICS, pronounced “nakes”) is used currently, for data from 2001 to the present.


Unfortunately the two systems are not backward comparable, so they are presented separately in EPS: 1970 to 2000
data are organized by SIC, and data beyond those years are organized by NAICS.

The most important change resulting from the shift to NAICS is the recognition of hundreds of new businesses in today’s
economy. NAICS divides the economy into 20 broad sectors rather than the SIC’s 10 divisions. This is especially
helpful in giving a more detailed breakdown of the fastest growth area in the country’s economy – “services.” For
example, advanced technology related “service” industries (e.g., professional, scientific and technical services) are
clearly differentiated from “in-person” services (e.g., health care) and low-wage services (e.g., accommodation and food
services).

For data that are organized by SIC, EPS was designed to illustrate the complexity of the service economy. We use the
term "Services and Professional" to underscore the important point that service occupations are a combination of high-
paying and low-paying professions.



The transition to NAICS has alleviated the need to explain that “services” are actually a wide mix of low, medium, and
high-wage industries.




About Missing Data
This profile is organized so that all non-disclosed information is presented first. Employment and personal income by
industry is presented last. For some rural counties, and for some industries, data gaps may occur. EPS has a built-in
system for estimating data gaps through 2000 for the 11 contiguous western states (AZ, CA, CO, ID, MT, NM, NV, OR,
UT, WA, WY). When estimates are used in the tables on pages 28 and 30, they are highlighted in bold red text.
Estimates in the charts are shown as thin solid lines with no markers.




Employment and Personal Income by Industry                                                                                 Page 27
Grant County, Kentucky                                                                                                  Employment (SIC)
                   Data ends in 2000 because the BEA switched to a different classification system (NAICS) in 2001.

                                                                                        Employment History (by SIC)
Growth                                                        6.0
                                                                                                                                               Services and
 • The employment category
   whose share of total                                                                                                                        Professional

     gained the most was                                      5.0                                                               4,840
     wage and salary                                                                                                                           Farm and Agricultural
     employment, which went                                                                                                                    Services
                                          Thousands of Jobs

                                                              4.0
     from 50.4% in 1970 to
     69.9% in 2000.
                                                                                                                                               Government and
                                                              3.0                                                                              government enterprises

Decline                                                       2.0                                                                              Manufacturing
 • The category whose share
   of total shrank the most                                                                                                     1,251
                                                                                                                                1,103
     was farm, which went                                     1.0                                                               964

     from 36.6% in 1970 to                                                                                                      542            Construction
     12.7% in 2000.                                           0.0                                                               5
                                                                70

                                                                73

                                                                76

                                                                79

                                                                82

                                                                85

                                                                88

                                                                91

                                                                94

                                                                97

                                                                00
                                                                                                                                               Mining
                                                              19

                                                              19

                                                              19

                                                              19

                                                              19

                                                              19

                                                              19

                                                              19

                                                              19

                                                              19

                                                              20
                                                                          Lines without markers are estimates.


Employment by Industry
Changes from 1970 to 2000
                                                                                                                                                  % of
                                                                                                                                                  New
                                                                               % of                % of                                         Employ         Change in
                                                                       1970    Total       2000    Total         New Employment                   ment            Share
Total Employment                                                    3,971.0             8,704.0              4,733.0
    Wage and Salary Employment                                      2,003.0   50.4%     6,081.0   69.9%      4,078.0                             86.2%
    Proprietors' Employment                                         1,968.0   49.6%     2,623.0   30.1%       655.0                              13.8%
Farm and Agricultural Services                                      1,469.0   37.0%     1,251.0   14.4%       (218.0)                               NA
    Farm                                                            1,453.0   36.6%     1,104.0   12.7%       (349.0)                               NA
    Ag. Services *                                                    16.0    0.4%        147.0   1.7%        131.0                               2.8%
Mining                                                                  5.0   0.1%          5.0   0.1%           -                                0.0%
Manufacturing (incl. forest products) *                              175.0    4.4%        964.0   11.1%       789.0                              16.7%
Services and Professional                                           1,654.0   41.7%     4,840.0   55.6%      3,186.0                             67.3%
   Transportation & Public Utilities                                 207.0    5.2%        364.0   4.2%        157.0                               3.3%
   Wholesale Trade                                                    34.0    0.9%        252.0   2.9%        218.0                               4.6%
   Retail Trade                                                      755.0    19.0%     2,156.0   24.8%      1,401.0                             29.6%
   Finance, Insurance & Real Estate                                  185.0    4.7%        385.0   4.4%        200.0                               4.2%
   Services (Health, Legal, Business, Others)                        473.0    11.9%     1,683.0   19.3%      1,210.0                             25.6%
Construction                                                         201.0    5.1%        542.0   6.2%        341.0                               7.2%
Government                                                           471.0    11.9%     1,103.0   12.7%       632.0                              13.4%
                                                                                                                        -0.4K           5.0K             -30%      20%


Estimates for data that were not disclosed are bold and red in the above table.

* Agricultural Services include soil preparation services, crop services, etc. It also includes forestry services, such as reforestation
services, and fishing, hunting and trapping. Manufacturing includes paper, lumber and wood products manufacturing.
Source: BEA REIS 2006 CD Table CA25




Page 28                                                                                                    Employment and Personal Income by Industry
Grant County, Kentucky                                                                             Employment (NAICS)
     Growth                                                                     Decline
 •   Missing data prevent this ranking
                                                                           •    Missing data prevent this ranking.




Employment by Industry (NAICS)
Changes from 2001 to 2006 Share of Total
                                                                                                                                     Change in Share
                                                                                                                                     of Total (2006 -
Category                                                 2001      2006    2006 Share of Total                   New Jobs                 2001)


Total employment                                      8,562.0   8,771.0 100%                            209.0
Wage and salary employment                            5,947.0   5,726.0   65%                          (221.0)
Proprietors employment                                2,615.0   3,045.0   35%                           430.0
 Farm proprietors employment                          1,053.0   1,001.0   11%                           (52.0)
 Nonfarm proprietors employment                       1,562.0   2,044.0   23%                           482.0
Farm employment                                       1,077.0   1,022.0   12%                           (55.0)
Nonfarm employment                                    7,485.0   7,749.0   88%                           264.0
 Private employment                                   6,331.0   6,511.0   74%                           180.0
                                                                                 20%        100%                  -300.0    500.0    -5%         6%




     Forestry, fishing, related activities, and oth     #N/A      #N/A #N/A                              #N/A
     Mining                                               5.0       5.0   0%                              -
     Utilities                                          #N/A      #N/A #N/A                              #N/A
     Construction                                      573.0      #N/A #N/A                              #N/A
     Manufacturing                                     954.0     734.0    8%                           (220.0)
     Wholesale trade                                    #N/A      #N/A #N/A                              #N/A
     Retail Trade                                     1,524.0   1,447.0   16%                           (77.0)
     Transportation and warehousing                    288.0     290.0    3%                              2.0
     Information                                        53.0      43.0    0%                            (10.0)
     Finance and insurance                             186.0     212.0    2%                             26.0
     Real estate and rental and leasing                225.0     307.0    4%                             82.0
     Professional and technical services               204.0     184.0    2%                            (20.0)
     Management of companies and enterprises             -         -      0%                              -
     Administrative and waste services                 357.0     360.0    4%                              3.0
     Educational services                               15.0      #N/A #N/A                              #N/A
     Health care and social assistance                 542.0      #N/A #N/A                              #N/A
     Arts, entertainment, and recreation                #N/A      88.0    1%                             #N/A
     Accommodation and food services                    #N/A     829.0    9%                             #N/A
     Other services, except public administratio       417.0     506.0    6%                             89.0
 Government and government enterprises                1,154.0   1,238.0   14%                            84.0
     Federal, civilian                                  60.0      56.0    1%                             (4.0)
     Military                                           75.0      77.0    1%                              2.0
     State and local                                  1,019.0   1,105.0   13%                            86.0
         State government                              137.0     133.0    2%                             (4.0)
         Local government                              882.0     972.0    11%                            90.0
                                                                                 0%          20%                                      -3.0%     0.9%
                                                                                                                  -300.0      90.0


Source: BEA REIS 2006 CD Table CA25N




Employment and Personal Income by Industry                                                                                                    Page 29
Grant County, Kentucky                                                                                        Personal Income (SIC)
                    Data ends in 2000 because the BEA switched to a different classification system (NAICS) in 2001.


Growth                                                                                      Income History (by SIC)
                                                                                                                                                 Non-Labor Sources
                                                                                                                                                 (investments,
 • The income category
   whose share of total
                                                               180.0                                                                             retirement, etc.)

     gained the most was non-                                  160.0                                                                             Services and
                                                                                                                                  155            Professional
     labor income, which went
     from 23.5% in 1970 to                                     140.0
     27.7% in 2000.                                                                                                                              Manufacturing (incl.
                                                               120.0                                                                             forest products)
                                                                                                                                  114
                                          Millions of 2006 $




                                                               100.0
                                                                                                                                                 Government
                                                                80.0

Decline                                                         60.0                                                                             Construction
 • The category shrank the
   share of total
                  whose
                                                                40.0
                                                                                                                                  46
                                                                                                                                  40
                                                                                                                                  27
     most was farm, which                                       20.0                                                                             Farm and Ag.
     went from 8.5% in 1970                                                                                                       4
                                                                                                                                                 Services
     to 0.3% in 2000.                                            0.0                                                              1


                                                               -20.0                                                                             Mining
                                                                  70

                                                                  73

                                                                  76

                                                                  79

                                                                  82

                                                                  85

                                                                  88

                                                                  91

                                                                  94

                                                                  97

                                                                  00
                                                                19

                                                                19

                                                                19

                                                                19

                                                                19

                                                                19

                                                                19

                                                                19

                                                                19

                                                                19

                                                                20
                                                                               Lines without markers are estimates.


New Income by Type

                                                                               % of                 % of                                        % of New
All figures in millions of 2005 dollars                                1970    Total       2000     Total     New Income 1970 to 2000            Income Change in Share
Total Personal Income*                                             153.8                 558.5                   404.7
Farm and Agricultural Services                                         13.4   8.7%         3.6      0.6%          (9.8)                               NA
   Farm                                                                13.0   8.5%         1.9      0.3%         (11.1)                               NA
   Ag. Services                                                         0.4   0.2%         1.7      0.3%           1.3                                0%
Mining                                                                  0.1   0.1%         1.5      0.3%           1.4                                0%
Manufacturing (incl. forest products)                                   6.2   4.0%        46.0      8.2%          39.8                               10%
Services and Professional                                              39.6   25.7%      113.9     20.4%          74.3                               18%
   Transportation & Public Utilities                                    8.7   5.7%        11.7      2.1%           3.0                                1%
   Wholesale Trade                                                      1.1   0.7%         9.9      1.8%           8.8                                2%
   Retail Trade                                                        17.3   11.2%       42.4      7.6%          25.1                                6%
   Finance, Insurance & Real Estate                                     3.2   2.1%         9.0      1.6%           5.8                                1%
   Services (Health, Legal, Business, Oth.)                             9.3   6.0%        41.0      7.3%          31.7                                8%
Construction                                                            7.3   4.7%        27.4      4.9%          20.1                                5%
Government                                                             14.2   9.2%        40.3      7.2%          26.1                                6%
Non-Labor Income                                                       36.1   23.5%      154.8     27.7%         118.7                               29%
   Dividends, Interest & Rent                                          16.6   10.8%       65.5     11.7%          49.0                               12%
    Transfer Payments                                                  19.6   12.7%       89.2     16.0%          69.7                               17%
                                                                                                                          -20.0         200.0              -9%          5%


* Estimates for data that were not disclosed are bold and red in the above table.
*The sum of the above categories do not add to total due to adjustments made for place of residence and personal contributions for social
insurance made by the U.S. Department of Commerce.
Source: BEA REIS 2006 CD Table CA05




Page 30                                                                                                     Employment and Personal Income by Industry
Grant County, Kentucky                                                          Personal Income (NAICS)
     Growth                                                              Decline
 •   Missing data prevent this ranking
                                                                    •    Missing data prevent this ranking.




Income by Industry (NAICS)
Changes from 2001 to 2006 Share of Total

                                                                                                                            Change in Share
                                                                                                                             of Total (2006 -
All figures in millions of 2006 dollars          2001     2006     2006 Share of Total                 New Income                      2001)


Personal income                                 543.5    590.7    100%                            47.3
Wage and salary disbursements                   151.5    150.2    25%                             (1.3)
Proprietors' income                              19.6     20.8     4%                              1.1
 Farm proprietors'                               (6.1)    (4.8)    -1%                             1.2
 Nonfarm proprietor                              25.7     25.6     4%                             (0.1)
Farm earnings                                    (5.1)    (3.9)    -1%                             1.2
Nonfarm earnings                                209.6    213.6    36%                              4.0
 Private earnings                               166.4    161.8    27%                             (4.6)
                                                                          -1%            100%             -5.0      50.0   -4.0%       0.3%



     Forestry, fishing, related act., and oth    #N/A     #N/A    #N/A                            #N/A
     Mining                                       0.1      0.1     0%                             (0.0)
     Utilities                                   #N/A     #N/A    #N/A                            #N/A
     Construction                                18.2     #N/A    #N/A                            #N/A
     Manufacturing                               42.1     38.5     7%                             (3.6)
     Wholesale trade                             #N/A     #N/A    #N/A                            #N/A
     Retail Trade                                34.8     32.9     6%                             (1.9)
     Transportation and warehousing               6.7      7.8     1%                              1.1
     Information                                  2.4      1.7     0%                             (0.7)
     Finance and insurance                        6.0      7.2     1%                              1.2
     Real estate and rental and leasing           2.8      2.6     0%                             (0.1)
     Professional and technical services          4.7      4.4     1%                             (0.3)
     Management of companies & enterp.            -        -       0%                              -
     Administrative and waste services            6.2      3.8     1%                             (2.4)
     Educational services                         0.0     #N/A    #N/A                            #N/A
     Health care and social assistance           16.6     #N/A    #N/A                            #N/A
     Arts, entertainment, and recreation         #N/A      0.5     0%                             #N/A
     Accommodation and food services             #N/A     13.2     2%                             #N/A
     Other services, except public admin.         7.9      8.9     2%                              0.9
 Government and government enterp.               43.2     51.8     9%                              8.6
     Federal, civilian                            3.4      3.3     1%                             (0.0)
     Military                                     1.4      2.7     0%                              1.3
     State and local                             38.4     45.7     8%                              7.4
         State government                         6.1      6.2     1%                              0.2
         Local government                        32.3     39.5     7%                              7.2
                                                                         0%              9%               -4.0      9.0    -2.0%       0.9%


Source: BEA REIS 2006 CD Table CA05N




Employment and Personal Income by Industry                                                                                           Page 31
Grant County, Kentucky                                                                                        Wages & Employment
                                                                   2006 Wages and Employment
                                                 1,400.0                                                                                    60,000
      Employment - Workers




                                                 1,200.0                                                                                    50,000




                                                                                                                                                     Annual Wages
                                                 1,000.0
                                                                                                                                            40,000
                                                   800.0
                                                                                                                                            30,000
                                                   600.0
                                                                                                                                            20,000
                                                   400.0
                                                   200.0                                                                                    10,000

                                                         0.0                                                                                -




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                             Employment (Left Axis)            Wages (Right Axis)               State Wages (Right Axis)



                                                                     County Wages and Employment in 2006
                                                                                                                                                     Average
  •       Of the major categories, the highest
          paying sector is manufacturing (incl.                                                                                                       Annual
          forest products). It accounts for 16.7%                                                                      Employment   % of Total        Wages
          of total employment and pays $41,195                       Total Private & Public                                5,300        100%         26,176
          per year.                                                  Total Private                                         4,133         78%         24,873
                                                                       Goods-Producing                                       858         16%         37,472
  •       Of the major categories that have data,
          the largest employment sector is trade,
                                                                         Natural Resources and Mining                       #N/A        #N/A                    #N/A
                                                                           Agriculture, forestry, fishing & hunting         #N/A        #N/A                    #N/A
          transportation, and utilities. It accounts
                                                                           Mining                                           #N/A        #N/A                    #N/A
          for 24.9% of total employment and pays
          $22,606 per year.                                              Construction                                       #N/A        #N/A                    #N/A
                                                                         Manufacturing (Incl. Forest Products)               690         13%         41,195
  •       Goods-producing employees (858
          workers ) were paid an average of
                                                                       Service-Providing                                   3,275         62%         21,571
                                                                         Trade, Transportation, and Utilities              1,318         25%         22,606
          $37,472.
                                                                         Information                                          31          1%         41,126
                                                                         Financial Activities                                221          4%         29,123
  •       Service-providing employees (3,275
          workers ) were paid an average of
                                                                         Professional and Business Services                  308          6%         18,999
                                                                         Education and Health Services                       512         10%         29,710
          $21,571.
                                                                         Leisure and Hospitality                             795         15%         12,064
                                                                         Other Services                                       77          1%         23,758
  •       Note that these data do not include
          proprietors or the value of benefits.
                                                                         Unclassified                                         14       0.26%         49,212
                                                                     Total Public                                          1,167         22%         30,791
  •       Wages in the public sector ($30,791)
          exceeded wages in the private sector
                                                                       Federal Government                                     56          1%         36,459
                                                                       State Government                                      132          2%         37,054
          ($24,873) by 23.8%.
                                                                       Local Government                                      979         18%         29,618
                                                                      Wages are shaded in green when they are more than 20% higher than the wages for all
                                                                                    sectors and in red when they are less than 20% lower.
Source: Bureau of Labor Statistics Quarterly Census of Employment and Wages (QCEW)



Page 32                                                                                                                             Wages Employment
Grant County, Kentucky                                                                           Data Sources
Data Sources

The Economic Profile System was designed to focus on long-term trends at the county level. We used this method and
geographic scale for several reasons: (1) trend analysis provides a more comprehensive view of changes than spot data for select
years, (2) the most reliable information on long-term employment and income trends is available at the county level, (3)
communities within counties rarely function as economic units themselves, (4) even though in many areas the most accurate
geographic scale to understand economic changes may be at the multi-county or regional level, county-level data is useful in the
context of existing political jurisdictions, such as county commissions and planning departments. The list below contains the
World Wide Web sites and telephone numbers for the databases used in this report:

The list below contains the World Wide Web sites and telephone numbers for the databases used in this report:

  • Regional Economic Information System (REIS)
    Bureau of Economic Analysis, U.S. Department of Commerce.
    http://bea.gov/bea/regional/data.htm
    Tel.202-606-9600

  • Quarterly Census of Employment and Wages (QCEW)
    Bureau of Labor Statistics
    http://www.bls.gov/cew
    Tel. 202-691-6567

  • Local Area Unemployment Statistics (LAUS)
    Bureau of Labor Statistics
    http://www.bls.gov/LAU
    Tel. 202-691-6392

  • 1990 and 2000 U.S. Census
    Bureau of Census
    http://www.census.gov
    Tel. 303-969-7750

  • County Business Patterns (CBP)
    Bureau of the Census, U.S. Department of Commerce.
    http://www.census.gov/epcd/cbp/view/cbpview.html
    Tel 301-763-2580

  • County Business Patterns (Before 1986)
    University of Virginia, Geospatial and Statistical Data Center:
    http://fisher.lib.virginia.edu
    Tel. 804-982-2630




                                                               Data Sources
Grant County, Kentucky                                                                                               Methods
Use of Federal Rather than State Data Bases
Data from state agencies was not used for this profile. Many of the state and local sources of data do not include information on the self-
employed or on the importance of non-labor income, such as retirement income and money earned from past investments. In many
counties this can result in the underestimation of employment and total personal income by at least one third. The REIS disk of the
Bureau of Economic Analysis contains the most robust data set and for this reason it was used as the primary source.

The only disadvantage of the REIS dataset is it’s not as recent; 2005 is the latest for REIS, while state data sources provide data for as
recent as 2006. By providing long-term trends data, from 1970 to 2005, having the most recent data is less important than being able to
discern where the county’s economy has been, and the direction in which it has been headed in recent years.


Industrial Classification Systems (SIC & NAICS)
The long-term historic industry data used in this profile are based on data that is organized by the U.S. Department of Commerce using
the Standard Industrial Classification (SIC) system. In recent years, the Department of Commerce has reorganized economic data
according to a new system, called the North American Industry Classification System (NAICS, pronounced “nakes”). County Business
Patterns started organizing their data using new NAICS in 1998, Census in 2000, and the Regional Economic Information System
(REIS) in 2001.

The NAICS system is an improvement to the SIC system in several ways: first, businesses that use similar processes to produce goods
or services are classified together. Previously, under the SIC system, some businesses were classified on the basis of their production
processes while others were classified under different principles, such as class of consumer. Second, NAICS is a flexible system that
will be updated every five years in order to keep pace with changes in the economy. Third, the NAICS system recognizes the
uniqueness and rising importance of the “information economy,” and provides several new categories, such as cable program
distributors and database and directory publishers. Finally, and perhaps the most useful, the NAICS system provides seven sectors to
better reflect services-producing businesses that were previously combined into one generic SIC division (the Services division).

This new system allows the data user to differentiate more clearly between what was previously often lumped under the general heading
of “services,” into categories such as arts and entertainment; education; professional, scientific and technical services; health care and
social assistance, among others.

Arguably the most important change of NAICS is the recognition of hundreds of new businesses in the economy. NAICS divides the
economy into 20 broad sectors rather than the SIC’s 10 divisions as seen in the table on the following page. Creating these additional
sector-level groupings allows NAICS to better reflect key business activities, as well as chronicle their changes.


                                           SIC Divisions vs. NAICS Sectors
          SIC Divisions                                                  NAICS Sectors
         •    Agriculture, Forestry, and Fishing                         •   Agriculture, Forestry, Fishing and Hunting
         •    Mining                                                     •   Mining
         •    Construction                                               •   Construction
         •    Manufacturing                                              •   Manufacturing
         •    Transportation, Communications, and Public                 •   Utilities
                                                                         •   Transportation and Warehousing
         •    Wholesale Trade                                            •   Wholesale Trade
         •    Retail Trade                                               •   Retail Trade
                                                                             Accommodation and Food Services
         •    Finance, Insurance, and Real Estate                        •   Finance and Insurance
                                                                             Real Estate and Rental and Leasing
         •    Services                                                   •   Information
                                                                         •   Professional, Scientific, and Technical Services
                                                                         •   Administrative and Support and Waste
                                                                         •   Management and Remediation Services
                                                                         •   Educational Services
                                                                         •   Health Care and Social Assistance
                                                                         •   Arts, Entertainment, and Recreation
                                                                         •   Other Services (except Public Administration)
         •    Public Administration                                      •   Public Administration
         •    None (previously, categories within each division)         •   Management of Companies and Enterprises



                                                                   Methods
Grant County, Kentucky                                                                                              Methods
Non-Labor Income
Non-labor income is a mix of Dividends, Interest, and Rent (money earned from investments), and Transfer Payments (government
payments to individuals). Private pension funds (e.g., 401(K) plans) are not counted as part of transfer payments.

Some data sources, such as “Section 202” data available from state unemployment insurance records and reported by the Bureau of
Labor Statistics, do not report non-labor income. The Bureau of Economic Analysis (BEA), on the other hand, tracks non-labor income.
In order to understand the actual growth (labor and non-labor) of personal income, the REIS/BEA data set must be used, and this is
what was used for this profile. From REIS table CA05, we added together the following two categories to derive non-labor income:
"Dividends, interest, and rent" and "Personal current transfer receipts."

Disclosure Gaps
Some data, such as employment and income figures in counties with small economies, are not available because of confidentiality
restrictions. In order to protect information about individual businesses, data are sometimes suppressed or, in the case of the
publication County Business Patterns, a range of values are given instead of a specific value. Generally, the smaller the geographic
level of analysis or the smaller the economy under examination the higher the chances that industry-specific information will be
suppressed.

Where disclosure gaps exist, there are a few ways to handle the gaps. One approach is to use a built-in system within EPS for
estimating data gaps through 2000 for the 11 contiguous western states (AZ, CA, CO, ID, MT, NM, NV, OR, UT, WA, WY). In order to
calculate the estimates, we first estimated gaps in the County Business Patterns data by using the firms by size information. Then we
used these County Business Patterns data to estimate the gaps in the REIS data. Finally, we scaled the estimates up or down to force
known identities. There is an option in EPS to show either these estimates or not. When these estimates are shown, annotations were
made in the profile documenting where estimates were used.



Aggregated Profiles
The Economic Profile System has an option to allow you to aggregate data from multiple counties into one profile. The majority of the
data in the profiles are summed in the aggregate profile. For some data points, however, the data are averaged. In order to do this,
EPS has to replace some of the data in the raw data tables with formulae. For example, the aggregate unemployment rate for a group
of counties is calculated from the sum of the unemployed divided by the sum of the labor force. This results in a proportionally weighted
average, where larger counties are given more weight then smaller counties.


The Economic Profile System interpolates the medians from the data that are available. When the Census releases data expressed as
a median, they also release the number of observations that fall in the full range of categories, or “brackets”. For example, median age
is interpolated from the number of people in each age bracket. EPS aggregates the number of people in each bracket, and then
interpolates the median from the aggregated data. In some cases, the Census have more detailed brackets than we do in the EPS
databases so the interpolations in aggregated EPS profiles are rough estimates.


Adjustments from Current to Real Dollars
Because a dollar in the past was worth more than a dollar today, data reported in current dollar terms should be adjusted for inflation.
The U.S. Department of Commerce reports personal income figures in terms of current dollars. All income data in this profile were
adjusted to real (or constant) 2005 dollars using the Consumer Price Index, except the Income Distribution information on page 5 of the
profile.




                                                                 Methods
Grant County, Kentucky                                                                                            Methods
Unemployment Rate
Unemployment is generally available as seasonally unadjusted or adjusted, and there is an advantage to using adjusted data. From the
Bureau of Labor Statistics web site (http://stats.bls.gov/lauseas.htm), an explanation of why adjusted figures should be used, whenever
possible: “Over the year, the size of the Nation's labor force, the levels of employment and unemployment, and other measures of labor
market activity undergo sharp fluctuations due to seasonal events including changes in weather, harvests, major holidays, and the
opening and closing of schools. Because these seasonal events follow a more or less regular pattern each year, their influence on
statistical trends can be eliminated by adjusting the statistics from month to month. These adjustments make it easier to observe the
cyclical, long term trend, and other non-seasonal movements in the series.”

Unadjusted numbers were used in this profile in order to obtain an annual average and because county-level data are not available in
adjusted format from the Bureau of Labor Statistics web site. This may introduce some error in counties where the size of the workforce
fluctuates seasonally, such as tourist destination areas.


Farm Income
Note that farm income figures on page 21 are not the same as the figures on pages 30 & 31. The figures on page 21 reflect income
from farming enterprises (farm proprietors and corporate income), while the farm income on pages 30 & 31 is personal income earned
by individuals (both proprietors, and wage and salary employees) who work in farming.




Specialization Index
The index was calculated by summing the squares of the difference in shares between the local economy and the US for the 20 sectors.

The specialization index was calculated as:
                   n

SPECIALit = ∑ ((EMPijt/EMPit)-(EMPusjt/EMPust)) 2
                   j=1



Where, SPECIALit = specialization of economy in county i in year t
           EMPijt = employment in industry j in county i in year t
           EMPit = total employment in county i in year t
           EMPusjt = employment in industry j in US in year t
           EMPust = total employment in US in year t
           n = number of industries

This index is commonly used as a measure of industrial specialization in the economy. Counties with a high specialization index can
also be described as not being economically diverse.




                                                                     Methods
Grant County, Kentucky                                                                                                  Glossary

Income
 • Total Personal Income = private earnings, income from government and government enterprises, dividends, interest, and rent, and
   transfer payments plus adjustments for residence minus personal contributions for social insurance.

 • Wage and salary = monetary remuneration of employees, including employee contributions to certain deferred compensation
   programs, such as 401K plans.

 • Other labor income = payments by employers to privately administered benefit plans for their employees, the fees paid to corporate
   directors, and miscellaneous fees.

 • Proprietors' income = income from sole proprietorships, partnerships, and tax-exempt cooperatives. A sole proprietorship is an
   unincorporated business owned by a person. A partnership is an unincorporated business association of two or more partners. A tax-
   exempt cooperative is a nonprofit business organization that is collectively owned by its members.


Transfer Payments
 • Transfer payments = payments to persons for which they do not render current services. As a component of personal income, they
   are payments by government and business to individuals and nonprofit institutions.

 • Retirement & disab. insurance benefit payments = Old-Age, Survivors, and Disability Insurance payments (Social Security), Railroad
   Retirement and Disability payments, Federal Civilian Employee & Disability Payments, Military Retirement, and State and Local
   Government Employee retirement payments.


 • Medical payments = Medicare, public assistance medical care and CHAMPUS payments.


 • Income maintenance (welfare) = Supplemental Security Income (SSI), Aid to Families with Dependent Children (AFDC), Food
   Stamps, and Other Income Maintenance Payments, such as emergency assistance, foster care payments and energy assistance
   payments.


 • Unemployment insurance benefit payments = unemployment compensation for state and federal civilian employees, unemployment
   compensation for railroad workers, and unemployment compensation for veterans.

 • Veterans benefits = primarily compensation to veterans for their disabilities and payments to their survivors.


 • Federal education and training assistance = Job Corps payments, interest payments on Guaranteed Student Loans, federal
   fellowship payments, and student assistance for higher education.

 • Other government payments = compensation of survivors of public safety officers and compensation of victims of crime. In Alaska
   this item includes Alaska Permanent Fund payments.

 • Payments to nonprofit institutions = payments for development and research contracts. For example, it includes payments for foster
   home care supervised by private agencies.

 • Business payments to individuals = personal-injury liability payments, cash prizes, and pension benefits financed by the Pension
   Benefit Guarantee Corporation.

Mean, Median and Modes
 • Mean = The sum of a list of numbers, divided by the total number of numbers in the list.

 • Median = "Middle value" of a list. The smallest number such that at least half the numbers in the list are no greater than it. If the list
   has an odd number of entries, the median is the middle entry in the list after sorting the list into increasing order. If the list has an
   even number of entries, the median is equal to the sum of the two middle (after sorting) numbers divided by two. The median can be
   estimated from a histogram by finding the smallest number such that the area under the histogram to the left of that number is 50%.


 • Mode = For lists, the mode is the most common (frequent) value. A list can have more than one mode. For histograms, a mode is a
   relative maximum ("bump").




                                                                  Glossary

								
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